Local Home Sales Down 25% From Last Year
Southern California's housing market showed more signs of deteriorating in August as sales plunged more than 25% from year-ago levels and prices rose at the slowest pace in more than seven years.
The region's median sales price for all homes — including condominiums and new construction — rose 2.7% in August from the same month last year to $489,000, according to DataQuick Information Systems, a real estate information company. The annual increase for the six-county region was the smallest since July 1999, when the median price rose by an equal amount.
Prices continued to rise last month, but sales remained stuck in a tailspin. August home sales in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties totaled 25,628 properties, down 25.3% from the same month last year, according to DataQuick. Regionwide sales have posted year-over-year declines for nine consecutive months.
Sales have plunged as mortgage rates have risen from near historic lows and buyers have become more selective amid a growing inventory of unsold properties.
"There's an awful lot of moaning going on right now," said Marshall Prentice, DataQuick president, in a statement. "Potential buyers and sellers need to be careful what they believe and exercise common sense in their decision making.... Prices have doubled the last 4½ years. So does the market keep all of that gain, or only 90%?"
The Inland Empire, which offers some of the region's most affordable housing, posted the biggest price gains in August despite sales declines that exceeded 20%. Riverside saw the median sales price rise 7% to $415,000 and San Bernardino posted a 6.1% increase in the median to $365,000.
Price gains were much more modest in the more expensive coastal counties. Orange County, the region's most expensive market, posted a 2.6% increase in the median price to $633,000. In Ventura County, the median inched up 1% to $592,000.
Prices for Los Angeles and San Diego counties, which were released last week, also continued to weaken last month. The median sales price in Los Angeles County rose 4.7% to $517,000, while San Diego reported a 2.2% decline to $415,000, DataQuick said.
In a separate report, the U.S. Commerce Department reported that construction starts, a measure of new home construction, fell by a larger than expected 6% in August from the previous month to a seasonally adjusted annual rate of 1.665 million units.
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BSRanch Perspective:
It was only a matter of time that home sales lowered, since they started to increase the interest. They tried to lower the Interest rate again however it takes months for the whole thing to catch up again. So, when they increase the Interest rate again it will lower the home sales again, when the sales go down over 50% then the Federal Government will become concerned.
BSRanch
The region's median sales price for all homes — including condominiums and new construction — rose 2.7% in August from the same month last year to $489,000, according to DataQuick Information Systems, a real estate information company. The annual increase for the six-county region was the smallest since July 1999, when the median price rose by an equal amount.
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Sales have plunged as mortgage rates have risen from near historic lows and buyers have become more selective amid a growing inventory of unsold properties.
"There's an awful lot of moaning going on right now," said Marshall Prentice, DataQuick president, in a statement. "Potential buyers and sellers need to be careful what they believe and exercise common sense in their decision making.... Prices have doubled the last 4½ years. So does the market keep all of that gain, or only 90%?"
The Inland Empire, which offers some of the region's most affordable housing, posted the biggest price gains in August despite sales declines that exceeded 20%. Riverside saw the median sales price rise 7% to $415,000 and San Bernardino posted a 6.1% increase in the median to $365,000.
Price gains were much more modest in the more expensive coastal counties. Orange County, the region's most expensive market, posted a 2.6% increase in the median price to $633,000. In Ventura County, the median inched up 1% to $592,000.
Prices for Los Angeles and San Diego counties, which were released last week, also continued to weaken last month. The median sales price in Los Angeles County rose 4.7% to $517,000, while San Diego reported a 2.2% decline to $415,000, DataQuick said.
In a separate report, the U.S. Commerce Department reported that construction starts, a measure of new home construction, fell by a larger than expected 6% in August from the previous month to a seasonally adjusted annual rate of 1.665 million units.
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BSRanch Perspective:
It was only a matter of time that home sales lowered, since they started to increase the interest. They tried to lower the Interest rate again however it takes months for the whole thing to catch up again. So, when they increase the Interest rate again it will lower the home sales again, when the sales go down over 50% then the Federal Government will become concerned.
BSRanch
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