Southern California Real Estate Deals And Steals Were On Everyone’s Christmas Wish List
Well, the numbers don’t lie, but they definitely can confuse. Here’s my take away, in a nutshell:
Real estate investors and vacation home buyers definitely see the benefit in buying right now, and are getting rock bottom deals on Southern California properties.
Although, homes sales did increase from November to December, the number of home sales are still well below average, based on statistical data released by Dataquik, which they’ve been tracking since 1988. And, even though the overall number of sold properties increased, 3 of the 6 Southern California counties saw large drops in sales, as compared to December of 2010.
I believe that below average sales can be attributed to non-investor home buyers that either can’t find what they’re looking for, or can’t get financing, due to the fact that traditional sellers aren’t interested in selling right now, and banks aren’t all that interested in lending to the majority of would-be buyers.
Data To Support My Southern California Real Estate Opinions:
While Southern California home sales increased month over month, from
November to December, a large number of the buyers were real estate investors and 2nd home buyers.
An increase in sales from November to December is normal, and typically occurs each year. There are many factors that play a part in this ongoing trend, including tax benefits, which investors are always looking for.
The number of “absentee” or non-owner occupied purchases has increased consistently since the real estate crisis began in 2006. This is due, in large part, to foreign buyers that are making purchases for investment purposes or acquiring vacation homes in Southern California coastal communities.
Southern California distressed sales continue to dominate the charts, as 52.5% of all December sales were either short sales or foreclosures. In fact, approximately 1 out of every 3 home sales in Southern California were the result of a foreclosure last month, and 1 out of every 5 (20%) was a short sale.
It’s important, however, to put these numbers in perspective. While a great number of homeowners are struggling right now, we need to remember that these percentages are also a reflection of traditional seller’s sentiment; Most homeowners that do not need to sell right now, have decided to sit tight and wait out the down market. If more non-distressed homeowners decided to sell, I’m certain that we would see a shift in the percentages.
Types Of Loans Used To Purchase Southern California Homes In December 2011
The use of Adjustable Rate Mortgage loans (ARMs) is far below the previous 10 year average:
Just as with ARMs, Jumbo loans are still infrequent, compared to to the pre-meltdown years:
FHA loans continue to be a preferred method of financing for Southern California homes, with FHA loans accounting for nearly 1/3 of all real estate transactions in December, 2011. The primary reason is that these loans provide smaller down payment options and more lenient qualification guidelines:
One shocking and exciting statistic is the number of Southern California home sales that did not require any financing. These “all cash” purchases are made up of a mix of real estate investors, vacation home buyers and traditional buyers. The numbers are staggering, as they are almost equal to the number of homes purchased with FHA financing:
What’s clear is that buyers are still bargain hunting, and there are still many Southern California homes to choose from in their preferred price range. Consider these Southern California home sales statistics:
- Sales under $200,000 increased 5.9% from December 2010 to December 2011
- Sales between $300,000-$800,000 decreased from December 2010 to December 2011
- Sales of $800,000 and above decreased from December 2010 to December 2011
Below is a breakdown of Southern California real estate activity for December, 2011, as compared to December, 2010:
- Ventura County’s Real Estate Sales Increased +1.30%
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Ventura County’s Median Sales Price Decreased –8.50%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 761 | 771 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $355,000 | $325,000 |
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Los Angeles County’s Real Estate Sales Increased +.80%
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Los Angeles County’s Median Sales Price Decreased –7.60%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 6,536 | 6,591 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $330,000 | $305,000 |
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Orange County’s Real Estate Sales Decreased –6.10%
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Orange County’s Median Sales Price Decreased –2.40%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 2,739 | 2,572 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $410,000 | $400,000 |
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San Diego’s Real Estate Sales Increased +3.80%
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San Diego’s Median Sales Price Decreased –5.40%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 3,191 | 3,311 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $333,000 | $315,000 |
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Riverside County’s Real Estate Sales Decreased –3.00%
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Riverside County’s Median Sales Price Decreased –3.00%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 3,696 | 3,584 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $200,000 | $194,000 |
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San Bernardino County’s Real Estate Sales Decreased –7.20%
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San Bernardino County’s Median Sales Price Decreased –1.30%
| Dec 2010 # of Sales | Dec 2011 # of Sales |
| 2,605 | 2,418 |
| Dec 2010 Median Sales Price | Dec 2011 Median Sales Price |
| $152,000 | $150,000 |
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