The La Jolla, Calif.-based research firm said home sales grew 35.1% on a month-to-month basis in March, but signs in the housing market still point to consumer resistance as the job market remains subdued.
In the counties of Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange, DataQuick reported 19,412 new and resale home sales in March, up from 14,369 in February.
Even still, that number is trending below the 20,746 sales recorded during the same period last year.
“Sales always increase from February to March,”DataQuick said in a release. “Last month’s sales count was 21.4% below the 24,706 average for all the months of March since 1988. Sales so far this year are 20% below the norm. During the last half of 2010 sales were 25% to 30% below average”
Sales of newly built homes fell to their lowest levels in 23 years last month.
Foreclosures are going to continue to plague the market “for a good while,” DataQuick concluded. However, the research firm sees “mortgage availability” as the key to unleashing a buyer’s market. Foreclosure resales made up 36.4% of all resales last month, down from 37% a month earlier.
“If a well-crafted home loan program comes down the pike, it’s going to make some lending institution the dominant player, at least for a while,” said John Walsh, DataQuick president.
In March, adjustable-rate mortgages accounted for 7.8% of last month’s purchase loans, while jumbo loans — or loans at the limit of $417,000 — made up 15.9% of March’s purchase lending, compared to 15.6% in February.
Cash purchases made up 30.5% of March home sales, with buyers paying a median of $205,250. Government-insured FHA loans represented 32% of all mortgages used to purchase homes last month.
This year’s March sales in SoCal were 5% lower than last year?
What about the housing tax credits?
The mainstream media said that the tax credits were the cause for the rejuvenated market last tear, and just wait until this year when sales fall off a cliff.
The HW reporter only covers housing, and Dataquick…..well, all they cover is housing.
Yet nobody wants to look a little deeper at the situation, and within five minutes discover the real problem with sales today.
The ONLY reason a SoCal home doesn’t sell today is because its list price is too high – and in most cases, WAY too high.
Detached and attached March sales in San Diego County (from MLS):
|Year||# of Sales||Avg. SP||Avg. $-per-sf||SP:LP||DOM|
Year-over-year sales in March were down 6%, and the average cost-per-sf was down 4%? That’s all? The average sales price went up? Either the tax credits didn’t have much impact, or this year’s market has held up pretty good so far.
Here are today’s Active Listings in SD County:
|SD Co.||# of ACT||Avg. SP||Avg. $-per-sf||DOM|
Today’s average list price is 83% ABOVE LAST MONTH’S AVERAGE SALES PRICE, and the $$-per-sf is 34% higher. There’s no surprise that recent sales are slightly lower with this much greed in marketplace.
But the over-priced turkeys do help the good buys stand out – thank you OPTs!
If today’s sellers would get off their high horse, sales would easily surpass last year’s healthy pace.