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Posted by on Jun 14, 2012 in Sales and Price Check | 5 comments | Print Print

Highest Monthly Sales Since 2005

From utsandiego.com:

San Diego County finished the spring-homebuying season in positive territory in prices and sales among all types of housing, Wednesday’s DataQuick report showed. Single-family home resales, in particular, closed out a blockbuster month in May.

The overall median price in May rose 3.2 percent from a year ago to $335,000, matching the median 18 months ago. When compared to April, prices rose 1.7 percent.

The county recorded 3,750 total sales last month, rising 21.5 percent from a year ago and 5.4 percent month-to-month.

Sales saw the most strength in the single-family resale segment, where buyers closed on 2,488 homes. That’s the highest figure for this category since September 2005, when 2,671 were sold, according to DataQuick stats. All regions of the county showed positive sales changes when compared to a year ago.

The real estate tracker reported home sales picked up across Southern California, especially in coastal regions, “where move-up markets have picked up steam,” this month’s analysis said.

More than 22 percent of recorded Southern California sales in May were $500,000 and up. That share is up from 21 percent the previous month and a year ago, DataQuick analysts found.

“May’s share of sales above $500,000 was the highest since July 2010, when they also made up 22.4 percent of the market,” the report added. The percentage of homes sold in Southern California that surpassed the $500,000 market was at its lowest in January 2009, when it was 13.8 percent.

According to DataQuick, other reasons that may explain May’s increase in sales and prices include:

  • An extra business day this May.
  • Fewer foreclosure resales and short sales. Their share of the market in SoCal fell to 44.8 percent, the lowest level in more than four years.
  • Record low mortgage rates that have fallen to new lows for the past six straight weeks. According to Freddie Mac, the 30-year fixed rate is at 3.67 percent, while the 15-year fixed rate is at 2.94 percent.

Do May’s numbers indicate a bottoming out of the market?

“The market is being slowly nursed back to health by low interest rates, a modestly improved economy and, we suspect, a widening sense that the housing sector is at or near bottom,” said DataQuick President  John Walsh, in a statement.

“There’s still plenty of uncertainty swirling around out there,” he added. “But it looks like more move-up buyers are concluding it makes sense in the long run to sell their homes now, even when it’s hard to swallow the price. The upside for many is a good deal on the next house, and the ability to lock in both a killer mortgage rate and a relatively low property tax base.”

5 Comments

  1. I guess it depends on who is reporting? From HW:

    Servicers started more foreclosures in May from the month before but filings were still down 4% from last year, according to RealtyTrac.

    “U.S. foreclosure activity has now decreased on a year-over-basis for 20 straight months including May, but the jump in May foreclosure starts shows that it’s going to be a bumpy ride down to the bottom of this foreclosure cycle,” said RealtyTrac CEO Brandon Moore.

    The market expected more foreclosures after the $25 billion settlement was struck in March over past abuses and documentation problems. But most of the foreclosures started in May will likely end up as short sales instead of REO, Moore said.

    In the first quarter, homes sold before foreclosure netted the bank $27,000 more on average than a traditional REO.

    “More banks are now recognizing that treating the problem of delinquent mortgages with short sales rather than bank repossessions can help them minimize their losses and also avoid taking on more REOs, which they then have to manage, maintain and market for sale,” Moore said.

  2. This number of $500,000 doesn’t say if they mean “house” or “condo”. In the central coastal area of San Diego, it would probably be the later. :(

  3. how high do cats bounce when dropped of a 50 story building?

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