California Home Sales Continue to Decline

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Real Estate Agent with RealtorĀ®, Photographer, Artist

California Home Sales Continue to Decline

Slow - real estate for sale in Temecula, CA Virginia O'ConnorThis is not news to most of us real estate professionals. In case you have a burning desire to know the figures, here's what I found.

The news for California continues to worsen as more economic data is released. Despite Housing Starts being up yesterday, and those were mostly confined to multi-family construction, something most reports do not mention, it was estimated that 34,239 new and resale houses and condos were sold in California in August. This is a decline from 35,202 sales in July and sharply down from 39,811 in the same period last year. This translates to a decrease of 2.7 percent from July and 14 percent from a year ago, according to he San Diego based firm MDA DataQuick, a property data provider.

These figures compare to other years of California sales for July which have have ranged from the low of 29,764 in 1992 to the 2005 high of 73,285. Remember those days? We're selling half as many homes, at half the prices of 2005! Ouch.

Prices were slightly higher year over year. The median price paid for a home in August totaled $260,000, up from $221,000 in April 2009. The highest median sale price on record was $484,000 in early 2007. It seems unlikely that we will see such highs again any time soon! Still, I don't For sale homes in Temecula, CA - Virginia O'Connor Realtorthink many could argue that, while this correction is extremely painful for all involved, it was probably necessary with home prices having skyrocketed beyond all reason during the height of the boom. Wages just couldn't keep pace to support those levels.

Also in August, 35.9 percent of existing home sales were homes that had been foreclosed on during the previous year. That was up from a revised 35.2 percent in July and down from 42.8 percent in August 2009. The record high of 58.5 percent of all existing homes sales being foreclosures occurred in February 2009.

We continue to hear of the huge numbers of short sales and foreclosures still in the system, the so-called "shadow inventory." What will happen to prices when those begin to trickle into the market? Most likely, we are headed for more price declines.

Good news for buyers! IF they can get loans....

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Information and content in this blog is original to Virginia M O'Connor. Photos are from various free or paid stock photo sources, used with the owner's permission or are original photos by Virginia M O'Connor.

Contact:

Virginia O'Connor - Temecula, CA RealtorVirginia M O'Connor
Temecula, CA Realtor
- Garner Valley, Mountain Center
Temecula, CA Realtor®/ Windermere

vmoc39@gmail.com
909 996-4962

Serving the Inland Empire and North San Diego County areas includingTemecula, Murrieta, Winchester, Garner Valley, Mountain Center, Anza, Aguanga communities and other surrounding areas.

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Comments (2)

Earl Miller
Coldwell Banker Solano Pacific - Benicia, CA
Solano County, Contra Costa,Benicia Real Estate, 707-280-6366

thanks for the post.....very informative,,,,,and also such a bummer...

Sep 24, 2010 05:13 AM
Ryan Case
Pacific Servicing - Temecula, CA

I have noticed a slow down, although well priced homes still sell quickly!

Sep 24, 2010 06:47 PM