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Down 14 percent last month in L.A. County and 9 percent in OC, according to Dataquick. The August declines weren't as bad as July's numbers, but they reflect continued concern about the economy, especially jobs. They also show what happens to sales when there are no home buyer tax credits. Prices, too, are dropping, but not by as much: L.A.'s median price of $330,000 was down from $339,000 the previous month and flat from August 2009. From press release:
"The loss of home buyer tax credits explains much of the sales weakness over the past two months. But other factors are suppressing sales, too, such as the lack of meaningful job growth and potential buyers' concerns about job security. Also, for many out home shopping now, there's little beyond ultra-low mortgage rates to pressure them to buy sooner rather than later, especially in areas where the number of homes for sale is climbing," said John Walsh, MDA DataQuick president. "Over the next couple of months it will be interesting to see how many home shoppers opt for the sure thing, a spectacularly low mortgage rate, and how many hold off in hopes prices fall significantly. The latter group will have to keep a close eye on rates. If they jump much it could wipe out the advantage of a modest price drop."
For now, the market remains stuck with the same discouraging metrics: a large number of foreclosed homes being sold, and a limited number of $500,000+ homes being financed. Unless that pattern changes, it's hard to see any big turnaround.
AUGUST HOME SALES (% change from August 2009)
Los Angeles 6,180 -14.0%
Orange 2,538 -9.0%
Riverside 3,478 -16.1%
San Bernardino 2,513 -23.3%
Ventura 719 -9.7%
AUGUST MEDIAN PRICE (% change from August 2009)
Los Angeles $330,000 +0.2%
Orange $440,000 +2.9%
Riverside $200,000 +5.3%
San Bernardino $158,000 +9.0%
Ventura $370,000 -1.5%
Source: MDA DataQuick,
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.