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DataQuick: SoCal Home Sales off 15.5% from November 2009

By Anonymous

From DataQuick: Southland Home Sales Dip; Prices Change Little

Southern California home sales fell in November to the second-lowest level for that month in 18 years, reflecting the weak economic recovery, a dormant new-home market and tight credit conditions. ...

A total of 16,208 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 3.2 percent from 16,744 sales in October, and down 15.5 percent from 19,181 in November 2009, according to MDA DataQuick of San Diego.
...
In the new-home market, sales were the slowest for a November since at least 1988. In many growth areas the math for builders just doesn?t work: The cost to construct is higher than what buyers can afford or are willing to pay. Often builders can?t compete with the pricing of nearby resale homes, especially foreclosures and short sales.

The last comment on the new-home market is one of the reasons I track the "distressing gap" (the change in the ratio between new and existing home sales). In most areas the builders just can't compete with distressed sales - although in some areas they are competing by building much smaller homes.

This report is consistent with Tom Lawler's initial read of 4.57 million existing home sales in November (seasonally adjusted annual rate).

Full post as published by Calculated Risk on December 15, 2010 (boomark / email).