Los Angeles and Southern California Home Sales for January 2013

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DQ News reported solid gains for the first month of 2013 with 16,058 new and resale homes sold in January.  This number is down 20.8 percent from December 2012, but up 10.6 percent from a year ago, January 2012.  It’s the highest home sales for a January in six years.

The median price at $321,000 also jumped 23.5 percent from a year ago when it was $260,000.  The median price dipped a .6 percent from December as it usual does.  January was the highest median since August 2008.  Plus, the median has increased month over month for the last ten consecutive months.

“This fledgling housing recovery has momentum. Already, price hikes have caused some to question whether it’s sustainable, whether it’s a ‘bubble.’ Let’s not forget, though, that we’re still climbing out of a deep hole from the housing downturn. Regional home sales remain sub-par and prices in many areas are at least 30 to 40 percent below their peaks. That’s not to say we don’t see risks. Sharp price gains can attract speculation, which could lead to unsustainable, short-term gains in certain submarkets. A lot of today’s housing demand is fueled not by spectacular job growth and soaring consumer confidence, but by super-low mortgage rates and unusually high levels of investor and cash purchases. Take away any one of those elements and it will matter,” said John Walsh, DataQuick president.

“For the overall market, price pressures should gradually ease as more homeowners react to rising values. This is the ‘supply response’ many analysts expect. The idea is that many who’ve held out for higher prices will be tempted to stick a for-sale sign in the front yard. Fewer will owe more than their homes are worth, enabling them to sell. Construction is already rising, and we could see lenders clear backlogs of distressed properties faster, adding to the supply.”

Much of the gains have been in the ‘move up” market with an increase of 74 percent in the $500,000 plus range versus one year earlier.  Sales of $800,000 plus rose 84.2 percent versus a year ago.

Foreclosure sales were down to 15 percent of total sales, down from a peak of 56.7 percent in February 2009.  Short sales were also down to 25.9 percent, doiwn from 27.2 percent a year ago.

http://dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA130213.aspx