July Home Sales Not So Golden in California

August 17, 2011 (Shirley Allen)

After a dismal spring of declining home sales, things started looking up for California in June when home sales jumped up 9.7 percent, but it all ended in one giant thud in July as sales of new and existing homes plummeted 11.0 percent according real estate information provider DataQuick.

An estimated total of 34,695 new and resale houses and condos were sold in the Golden State in July. That was down from 38,975 sales in June and down 1.4 percent from July 2010. Historically, California averages 46,577 home sales in the month of July.

The median price for a home in July decreased 1.6 percent to $252,000 from June’s median price of $253,000, and is down 6.0 percent from a median price of $268,000 in July of 2010. The statewide current cycle peak price was $484,000 in early 2007.

Distressed properties continued to dominate the California market as 51.9 percent of all re-sales in July were distressed sales with homes that had been foreclosed on in the previous twelve months making up 34.6 percent of the existing home sales in July.

That was down from 35.1 percent posted in the previous month of June and down from 35.2 posted in July of 2010.

Short sales decreased to 17.3 percent of re-sales last month compared to 17.6 percent in June and down from 18.6 percent in July of 2010.

The typical mortgage payment for home buyers in July remained virtually unchanged for the third consecutive month at $1027, which was also $57 less than the $1,084 payment observed in July 2010. July’s typical mortgage payment is 62.7 percent lower than it was during the current cycle’s peak in July 2006.

“Indicators of market distress continue to move in different directions. Foreclosure activity has declined sharply from its peaks in recent years, but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying has eased a bit in recent months but remains relatively high,” DataQuick reported.

Tags: DataQuick, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment

Source:
DataQuick