REAL ESTATE SALES AND PRICES CONTINUE TO CLIMB IN SOUTHERN CALIFORNIA
The Southern California real estate market continued its trend of positive numbers and signs of improvement in June 2012; Southern California real estate sales were nearly identical month over month, with 22,192 sales in May and 22,075 real estate sales in June 2012. However, there was a marked increase in the June 2012 real estate sales figures when compared to June 2011 numbers, showing an increase of 7.5% year over year. In addition, June 2012 was the 6th consecutive month in which real estate sales increased as compared to the previous year's figures.
MEDIAN HOME PRICES INCREASE IN ALL 6 SOUTHERN CALIFORNIA COUNTIES IN JUNE 2012
The Southern California median home price, while still 40.6% below the peak of 2007, continued upward on a month to month basis, as well as year over year, with all 6 Southern California counties contributing to the increase! In fact, the median home price for Southern California real estate is at a 2 year high, with sales reaching a price point not seen since 2010, and June's median sales price was 21.5% higher than this real estate cycle's low point, recorded in 2009. This is due, in large part, to the lack of available inventory and a high demand by Southern California home buyers. The increase in prices has had a big impact on consumer and home builder confidence. In fact, the National Association of Home Builders has reported that builder confidence is at a 5 year high, and some Southern California real estate projects that were previously put on hold, are now underway.
HIGHER PRICED HOMES ARE POPULAR AGAIN IN SOUTHERN CALIFORNIA
One important factor, contributing to the increase in Southern California's median sales price is the obvious shift toward higher priced real estate listings. Over the past several years, foreclosure sales in the Inland Empire were the primary focus for traditional home buyers, as well as real estate investors, due to the high inventory and low prices. Now that the inventory of foreclosure sales has decreased substantially, and prices have begun to push upward, there is less activity in this area of Southern California, and price range. Additionally, jumbo loans are becoming more accessible, which is bringing Southern California luxury home buyers back to the market, and bolstering real estate sales of higher priced properties.
The biggest increase in Southern California real estate sales occurred in the $300,000 and above price range in June 2012, as compared to June 2011:
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Real Estate Sales in the $300,000 to $800,000 Price Range Increased 12.8%
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Real Estate Sales at or Above $800,000 Increased 7.1%
FORECLOSURE SALES AND SHORT SALES DECLINE IN SOUTHERN CALIFORNIA
Southern California distressed real estate sales continued to decline from month to month, and as compared to one year ago. However, foreclosure sales and short sales still accounted for 42.2% of all real estate sales in Southern California, in the month of June 2012. There has been a noticeable change in the type of listings available, with standard real estate listings (non distressed properties, and what is known as an equity sale) on the rise. If this trend continues, and once lenders begin to implement the new foreclosure and short sale guidelines mandated by the multi state mortgage settlement, we should begin to see the percentages shift.
ABSENTEE BUYERS STILL BEATING OUT TRADITIONAL SOUTHERN CALIFORNIA HOME BUYERS
Although prices are on the rise, the number of real sales in June 2012, made to Southern California real estate investors and vacation home buyers was almost identical to the numbers posted in the previous month, and is still well above the 12 year average. This continues to be a source of frustration for traditional home buyers, since a great deal of these absentee buyers are offering all cash and quick closings, and typically beat out buyers requiring financing and a standard escrow period of 30 days or more.
FINANCING OPTIONS USED TO PURCHASE SOUTHERN CALIFORNIA REAL ESTATE IN JUNE 2012
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ARM Loans:
The number of Southern California properties purchased with Adjustable Rate Mortgage loans (ARMs) was nearly identical to last month's figures. This was, once again, a significant change from the numbers posted in June of 2011, and the 12 year average.
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Jumbo Loans:
As mentioned above, Jumbo home loans are on the rise, and have increased steadily from month to month and year to year.
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Cash Purchases:
Southern California real estate purchases made with all cash decreased for the second month in a row, but remained well above the 12 year average, and near record breaking levels in June 2012.
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FHA Loans:
FHA home loans continue to be a popular and viable option for Southern California home buyers. However, the use of FHA loans decreased once again, from May to June 2012, and as compared to one year ago.
SOUTHERN CALIFORNIA REAL ESTATE ACTIVITY FOR JUNE 2012 COMPARED TO JUNE 2011
4 out of the 6 Southern California counties posted an increase in real estate sales from May to June 2012.
6 out of the 6 Southern California counties posted an increase in the median sales price from May to June 2012:
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Ventura County’s Real Estate Sales Increased +23%
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Ventura County’s Median Sales Price Increased -3%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
774 |
952 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$355,000 |
$365,500 |
- Los Angeles County’s Real Estate Sales Increased +11.9%
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Los Angeles County’s Median Sales Price Increased –2.2%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
6,809 |
7,619 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$318,000 |
$325,000 |
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Orange County’s Real Estate Sales Increased +13.7%
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Orange County’s Median Sales Price Increased +1.8%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
2,947 |
3,351 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$445,000 |
$453,000 |
- San Diego County's Real Estate Sales Increased +9.1%
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San Diego County's Median Sales Price Increased +1.7%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
3,444 |
3,756 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$330,000 |
$335,500 |
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Riverside County’s Real Estate Sales Decreased +3.2%
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Riverside County’s Median Sales Price Increased +3.3%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
3,960 |
3,832 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$200,000 |
$206,500 |
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San Bernardino County’s Real Estate Sales Decreased +1.3%
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San Bernardino County’s Median Sales Price Increased +6.8%
|
June 2011 # of Sales |
June 2012 # of Sales |
|
2,598 |
2,565 |
|
June 2011 Median Sales Price |
June 2012 Median Sales Price |
|
$148,000 |
$158,000 |
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