Sales up, prices down

It's the same story, only the numbers have changed. L.A. County homes sales jumped 52.6 percent in October from a year earlier, but the median price fell 29 percent, to $355,000. This is what happens when 40.3 percent of the L.A. properties being sold are foreclosures that lenders - or their servicers - want to unload. The L.A. numbers generally reflect the picture throughout Socal. “Whether the worst of the housing correction is behind us will depend largely on the depths of this economic downturn, especially with regard to job losses," says John Walsh, president of Dataquick, which just released its numbers. From the release:

Last month’s record annual sales increase reflects two things: Very weak sales a year ago on the heels of the August credit crunch and earlier subprime meltdown, and this year’s big sales gains in inland markets where prices have fallen 30 percent or more. Depreciation in such areas has triggered record foreclosures, which tend to sell at a discount, attracting bargain hunters. Fifty-one percent of existing homes that closed escrow in October were foreclosed on at some point in the prior 12 months. That’s up from a revised 50.0 percent in September and 16.0 percent in October 2007.

OCTOBER HOMES SALES (% change from 2007)
Los Angeles 56.2%
Orange 66.6%
Riverside 94.3%
San Bernardino 78.2%
San Diego 54.6%
Ventura 49.1%

OCTOBER HOME PRICES (change from 2007)
Los Angeles $355,000 -29.0%
Orange $420,000 -26.8%
Riverside $230,000 -35.4%
San Bernardino $200,000 -39.4%
San Diego $323,500 -29.7%
Ventura $375,000 -29.9%

Source: Dataquick