Are We There Yet?
With all the news of foreclosures headlining the news, it is easy to overlook
the signs that we may be near the bottom of the market.
According to a May 19, 2008 Southland Home Sales Report released by real estate
news source DataQuick, “Southern California home sales surged last month to the
highest level since August as bargain shoppers took advantage of price slashing.
Although some higher-end costal markets also posted gains, the swell in
transactions mainly reflects more sales of homes under $500,000 in inland areas
where depreciation and foreclosures have been greatest.”
In other news, a May 22, 2008 RealtyTimes article entitled, “Real Estate
Outlook: Worst is Over,” “The housing market offered some immediate hints of
recovery with new home starts up by 8.2 percent last month [April, 2008] and
building permits up by 5 percent.”
The California Association of Realtors reported on May 23rd that “Home sales
registered a 2.5 percent year-to-year gain compared with April 2007, ending a
30-month string of year-to-year percentage decreases that began in October
2005.”
Other signs that we are at, or near, the bottom of this cycle are:
Buy and hold investors are coming back into the market.
Multiple offers on bank-owned properties, trophy properties, and well-priced
homes in the best school districts.
If you have been sitting on the sidelines waiting to enter the market, there may
not be a better time than now. Prices in some markets may not have hit their
lowest point, but they probably aren’t far off. In many areas, only the pace of
sales has been affected while prices have held firm and in some cases, have gone
up.
In a changing market, it is more important than ever to have the assistance of a
knowledgeable, local REALTOR®.
Home Sales Continue Rising in May
Home sales rose 4.2% from April,
continuing the normal sales increase of the spring
selling season. Year-over-year, home sales were down 9.6%. This is the
first time year-over-year sales have been down by only
single-digits since May 2007.
The median price for single-family, re-sale
homes in Orange County fell 3.2% from April. Year-over-year, the median price was off 22.7%.
As the market stabilizes, by that I mean sales continue to increase and we start
seeing year-over-year increases, prices, statistical prices, will continue to decline as the
foreclosure and bank-owned properties work their way through of the market. Approximately six
months after sales turn around, prices should stop declining.
Orange County condo sales rose 10.2% from
April, but were down only 11.8% year-over-year: the best
year-over-year number since February 2006. The median price
fell 9.3% to $353,750, a year-over-year drop of
23.1%.
Comprehensive statistical tables are on
page two.
A complete set of charts for each city we
cover is also available by clicking on the city in the City
Trends section to the bottom right.
The real estate market is very hard to generalize.
It is a market made up of many micro markets. For complete
information on a particular neighborhood, call me.
If we can help you devise a
strategy, call or click buyer or
seller.
For our statistical tables,
click
next
page.
We update this report monthly.
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Tables and Charts
The tables on the second page provide a
snapshot of the Orange County real estate market.
(continued)
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