September home sales up 65% from last year in Southern California

From the Los Angeles Times

September home sales up 65% from last year in Southern California

Experts say the numbers reflect attitudes before the economic crisis worsened, and warn that despite the increase, the real estate market is likely to suffer.

By Peter Y. Hong
Los Angeles Times Staff Writer

10:43 AM PDT, October 20, 2008

Sinking home values continued to drive home sales in September as bargain hunters snared properties at 2003 prices.

The median Southern California home sales price was $308,500 in September, the lowest since May 2003 and down 33% from the September 2007 price of $462,000, according to real estate research firm MDA DataQuick.

The number of homes sold in Los Angeles, Orange, San Bernardino, Riverside, Ventura and San Diego counties shot up 65% compared with September 2007. Fifty percent of homes sold last month had been foreclosed.

Real estate experts said despite the increase in September sales, the real estate market is likely to suffer along with the rest of the economy.

September's figures reflect home purchase decisions that were made in mid- to late-summer, before the dramatic worsening of the nation's economic crisis in recent weeks, said MDA DataQuick president John Walsh.

"Over the next few weeks our sales data will begin to show how the meltdown in financial markets this fall has impacted housing demand," Walsh said in a statement.

Since September, the stock market has declined sharply and unemployment in California has remained close to 8%. Mortgage interest rates have also been rising, elevating the cost of home purchases.

A total of 20,497 homes closed escrow in the Southern California in September, up 5.8% from 19,366 in August. Sales were up most in Riverside County, which posted a 106% gain from the same month a year ago. Riverside and San Bernardino counties also recorded the steepest year-to-year price declines in the region, with the median sales price down 37% compared with a year ago.

In Riverside County, 69% of homes sold in September had been foreclosed, while foreclosed properties comprised 63% of San Bernardino County homes sold last month. Foreclosed homes made up 39% of Los Angeles County homes sold in September and 37% of Orange County homes sold last month.

peter.hong@latimes.com

http://www.latimes.com/news/la-fi-homes21-2008oct21,0,5677248.story?track=rss