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Wasn't the housing market supposed to be in the dumps? Well, yes, it was, and still is. But a combination of factors - first-time buyers, high-end sales, and investment activity - led to a pretty decent June, according to Dataquick, although sales were still down 13.3 percent from a year earlier. But that sizable month-to-month increase came without the need of federal tax credits, which is at least something. The median price in L.A. County was $318,000, down $2,000 from May and 5.1 percent from a year earlier. So what do these decent-looking numbers really mean? From press release:
"The housing market remains dysfunctional and lopsided, just somewhat less so than it was a few months or a year ago. The market mix indicates that a lot of potential buyers are either stuck, for lack of equity, or spooked and are waiting things out. Another large, lingering problem is the fussy mortgage market. Qualifying for a mortgage remains difficult for many, and the use of adjustable-rate and "jumbo" home purchase loans remains far below the historical norm," said John Walsh, DataQuick president.
Here are some telling stats: Sales rose 6.3 percent from May for homes priced below $200,000, but fell 4.9 percent in the $300,000 to $800,000 range. This is where the decline in values can really be felt, with many owners owing more than their homes are worth. Tight credit conditions are also creating problems in the mid- to high-end markets (not many adjustable-rate and "jumbo" loans available).
JUNE HOME SALES (% change from June 2010)
Los Angeles 6,809 -13.3%
Orange 2,947 -13.9%
Riverside 3,960 -14.7%
San Bernardino 2,598 -18.3%
Ventura 774 -13.0%
JUNE MEDIAN PRICE (% change from June 2010)
Los Angeles $318,000 -5.1%
Orange $445,000 0.0%
Riverside $200,000 -4.8%
San Bernardino $148,000 -7.5%
Ventura $355,000 -7.6%
Source: DataQuick, DQNews.com
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.