Sluggish housing market is holding up the works

No sign of a significant turnaround in December, although activity under $300,000 was strong, according to Dataquick's latest numbers. Sales in L.A. County jumped 12.5 percent from November, which sounds impressive but it's normal to see a pickup in December (buyers will sometimes want to close before the end of the year for tax reasons). Compared with a year earlier, sales were up 0.8 percent (and in several other parts of Socal they were down). The median price in L.A. was $305,000, down about a percent from November and 7.6 percent from a year earlier. From press release:

"Last year ended much the way it began, with pitifully low new-home sales, record investor activity, drum-tight credit, and lots of potential buyers and sellers just sitting tight," said John Walsh, DataQuick president. "Some of the economic vital signs have improved lately and it's sparked a renewed sense of optimism in housing circles," he said. "Coupled with incredibly low mortgage rates, it certainly suggests 2012 might offer the 'rock bottom' for pricing that many buyers and sellers have been waiting for. But the housing drama isn't over. Credit conditions remain horrible, leaving many unable to take advantage of today's improved affordability. And lenders still must decide the fate of scores of borrowers who aren't making their mortgage payments."

DECEMBER HOME SALES (% change from December 2010)
Los Angeles 6,591 +0.8%
Orange 2,572 -6.1%
Riverside 3,584 -3.0%
San Bernardino 2,418 -7.2%
Ventura 771 1.3%

DECEMBER MEDIAN PRICE (% change from December 2010)
Los Angeles $305,000 -7.6%
Orange $400,000 -2.4%
Riverside $194,000 -3.0%
San Bernardino $150,000 -1.3%
Ventura $325,000 -8.5%

Statewide, December sales were up 3.3 percent from November and 0.1 percent from a year earlier, according to the California Association of Realtors. The California median price was $285,920, up 1.8 percent from November but down 6.2 percent from a year earlier. Keep in mind that CAR's methodology is somewhat different than Dataquick's, but the numbers generally point to the same sluggish market. Not encouraging for the rest of the economy.