Home Sales in Los Angeles and Southern California for the Month of September 2012

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According to DQ News, home sales in Loa Angeles and Southern California rang in at 17,859, which is a 20.4 percent drop from the 22,438 sales in August 2012 and down 1.6 percent from 18,149 in September 2011.

Although it’s normal for a sales drop from August to September, the steep drop this year is at least partially attributable to the month starting on a weekend and ending on a weekend leaving only 19 business days in September versus 23 business days in August 2012.   When you measure the average number of escrows to close daily, the number was down 6.3 percent from August and up 8.1 percent from September last year.

Last month’s median price at $330,000 was the highest since August 2008.  The southern California median has risen for eight consecutive months and increased year over year for the last six months.  It looks like half of the 12.5 percent increase over the same month last year is due to a shift in the type of home selling.  Far fewer are heavily discounted foreclosure properties and many more are higher end move up type properties.

In September 23.5 percent of all Southern California sales were for $500,000 or more, which is the highest in four years.

“The latest stats suggest unbelievably low mortgage rates and modestly higher consumer confidence continue to put pressure on a supply-starved housing market. We can’t stress enough, though, that the median sale price and other price measures reflect more than just rising home values. There have been a major change in market mix, meaning fewer low-priced sales, fewer foreclosures re-selling, and more sales in middle and upscale markets,” said John Walsh, DataQuick president.

“Assuming this year’s modest upward trend in pricing holds,” he said, “we’ll eventually see the market begin to re-balance with more supply, though that could take many months. More and more potential move-up buyers who do have equity will be thinking about timing their next purchase to maximize the advantage of super-low rates and relatively low prices. As more potential sellers get off the fence, or no longer owe more than their homes are worth, we’ll see the inventory of homes for sale rise. That’s going to limit price appreciation.”

Foreclosures were only 16.4 percent of total sales in September and that’s the lowest since October 2007.  The high in the current cycle was 56.7 percent in February 2009 so it’s been quite an improvement.

Short sales were 26.5 percent of the total mix.