Here's the March housing
update for Southwest California. In addition to unit sales and median
price for the past 2 years, I've also compared our Q1 sales for 2009
with this year to see where the trendlines are. Overall, sales are up
slightly constrained only by lack of inventory. Our median price is
holding it's own - up a little/down a little by city. After 3 years of
dropping like a rock, holding steady looks good. There's also a demand
chart showing inventory levels at around 2 months for each of the 6
cities.
However, the chart on sales and inventory by price point illustrate that inventory of homes in the salable range under $400,000 is only about a month. The final chart shows our mix of product with REO's now comprising less than 20% of our market, down from nearly 90% just 18 months ago. Short sales now make up over 50% of our market but have a failure rate of 70%. So backing out the 5 year inventory of $million$$ plus homes that aren't selling and the percentage of short-sales that won't sell - our inventory is in desperate need of an infusion. We wish the banks would either foreclose and sell, or get out of the business.
However, the chart on sales and inventory by price point illustrate that inventory of homes in the salable range under $400,000 is only about a month. The final chart shows our mix of product with REO's now comprising less than 20% of our market, down from nearly 90% just 18 months ago. Short sales now make up over 50% of our market but have a failure rate of 70%. So backing out the 5 year inventory of $million$$ plus homes that aren't selling and the percentage of short-sales that won't sell - our inventory is in desperate need of an infusion. We wish the banks would either foreclose and sell, or get out of the business.
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