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Bailout

: Calculated Risk

SoCal House Sales: "Hot Inland, Cool on Coast"

By Anonymous

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Note: I think California data provides an overview of the key dynamics in the housing market.

From DataQuick: Southland home sales hot inland, cool on coast; median price dips

Southern California homes sold at a faster pace than a year ago for the 10th consecutive month in April as first-time buyers and investors continued to target distressed inland properties. ...
A total of 20,514 new and resale houses and condos closed escrow in the six-county Southland last month. That was up 5.2 percent from 19,506 in March and up 31.4 percent from 15,615 a year ago ... Last month?s sales were the highest for that month since April 2006, when 27,114 homes sold, but were 18.2 percent below the average April sales total since 1988, when DataQuick?s statistics begin.
Foreclosure resales ? homes sold in April that had been foreclosed on in the prior 12 months ? accounted for 53.6 percent of all Southland resales last month. It was the seventh consecutive month in which post-foreclosure properties made up more than half of all resales.
The deep discounts associated with foreclosures have created stiff competition for builders, who last month sold the lowest number of newly constructed homes for an April since at least 1988.
At the same time, the number of single-family houses that resold last month was at record or near-record-high levels for an April in many of the more affordable, foreclosure-heavy inland markets. They included Palmdale, Lancaster, Moreno Valley, Perris, Indio, San Jacinto, Lake Elsinore and Victorville.
The sales picture was dramatically different in many older, high-end communities closer to the coast, where foreclosures and deep discounts are less common. Sales of existing houses remained at or near record lows for an April in markets such as Beverly Hills, Malibu, Palos Verdes Peninsula, Manhattan Beach and Pacific Palisades.

Key points:

Ignore median price. The mix changes the median price too much.

The low end is hot. Record or near record sales in the "affordable, foreclosure-heavy" communities.

The high end is cool. This will change once prices start to fall (See House Price Puzzle: Mid-to-High End)

Foreclosures are still near record levels - and will probably hit records again now that the moratorium is over. Foreclosure resales accounted for 53.6 percent of all resales last month. Remember the Distressing Gap!