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SoCal Home Sales decline slightly Year-over-year in April

By Anonymous

Note: ignore the median price - it is distorted by the changing mix.

From DataQuick: Southern California home sales dip

Southern California?s housing market leveled off last month as sales activity migrated ever-so-slightly from inland bargain areas toward entry- and mid-market neighborhoods closer to the coast. ...

Sales of new and resale homes totaled 20,299 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 0.9 percent from 20,476 in March, and down 1.0 percent from 20,514 for April 2009, according to MDA DataQuick of San Diego.

It?s possible that a significant number of sales that would otherwise have closed escrow in April were delayed until May as buyers tried to take advantage of new state tax credits effective May 1. In addition, those who rushed to sign a sales contract last month before the April 30 deadline for a federal home buyer tax credit would likely close escrow in May or June.

... The Southland?s 1.0 percent decline in overall sales was the first year-over-year drop in almost two years.
...
Foreclosure resales accounted for 36.4 percent of the resale market last month, down from a revised 38.3 percent in March, and down from 53.5 percent a year ago. The all-time high was February 2009 at 56.7 percent.

Government-insured FHA loans, a popular choice among first-time buyers, accounted for 38.5 percent of all mortgages used to purchase homes in April.

... Buyers who appeared to have paid all cash ? meaning there was no indication that a corresponding purchase loan was recorded ? accounted for 27.7 percent of April sales, paying a median $200,000.

... Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last two years.

As DataQuick noted, many California buyers might have signed a contract in April (to get the Federal tax credit), but are planning on closing in May (to get the state tax credit). That could have reduced sales in April - we need to wait a few months to let this sort out. Also DataQuick tracks foreclosures, but not short sales - and the total percentage of distressed sales is probably still over half the market.

Full post as published by Calculated Risk on May 18, 2010 (boomark / email).