The
PICKFORD
E S C R O W C O M PA N Y
Escrow Examiner
June 2010
Southern California home sales dip, median
price rises from ’09
La Jolla, CA---Southern California’s housing April’s year-over-year changes in sales volume
market leveled off last month as sales activity ranged from a decline of 12.3 percent in San
migrated ever-so-slightly from inland Bernardino County to an 11.6 percent increase
bargain areas toward entry- and mid-market in Orange County. Condo resales rose 16.9
neighborhoods closer to the coast. The overall percent. The Southland’s 1.0 percent decline
median price was unchanged from the month in overall sales was the first year-over-year drop
before, but it jumped compared with April in almost two years.
2009’s low point, a real estate information “The market’s still taking baby steps on a long
service reported. road to recovery, trying to find its footing. It’s
Sales of new and resale homes totaled 20,299 unclear which of today’s sales characteristics
in Los Angeles, Riverside, San Diego, Ventura, are part of a new reality, and which are still
San Bernardino and Orange counties last temporary turbulence. The mortgage market,
month. That was down 0.9 percent from especially for larger home loans, is definitely
20,476 in March, and down 1.0 percent from dysfunctional. Obviously things would be
20,514 for April 2009, according to MDA different if the job picture were brighter,” said
DataQuick of San Diego. John Walsh, MDA DataQuick president.
It’s possible that a significant number of sales The median price paid for a Southland home
that would otherwise have closed escrow in was $285,000 last month, the same as in
April were delayed until May as buyers tried to March, and up 15.4 percent from $247,000
take advantage of new state tax credits effective for April 2009, which was the low point of the
May 1. In addition, those who rushed to sign current cycle. The median peaked at $505,000
a sales contract last month before the April 30 in mid 2007. The median’s peak-to-trough
deadline for a federal home buyer tax credit drop was due to a decline in home values as
would likely close escrow in May or June. well as a shift in sales toward low-cost homes,
especially foreclosures.
(article continued on back)
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The Escrow Examiner June 2010
(article continued from front)
Similarly, April’s year-over-year gain Sales Volume Median Price
in the median sale price was partly a All Homes Apr-09 Apr-10 %Chng Apr-09 Apr-10 %Chng
reflection of more sales occurring in
Los Angeles 6,425 6,688 4.1% $300,000 $329,500 9.8%
costlier coastal markets, and fewer in the
lower-cost inland areas. A year ago, the Orange 2,391 2,669 11.6% $380,000 $430,000 13.20%
two most affordable counties – Riverside Riverside 4,469 4,117 -7.9% $180,000 $195,000 8.3%
and San Bernardino – accounted for 37 San Bernardino 3,130 2,744 -12.3% $138,500 $150,000 8.3%
percent of total sales, while last month San Diego 3,375 3,292 -2.5% $290,000 $325,250 12.20%
they represented 33.8 percent. Ventura 724 789 9.0% $340,000 $382,000 12.40%
Last month 19.3 percent of all sales SoCal 20,514 20,299 -1.0% $247,000 $285,000 15.40%
were for $500,000 or more, compared
with 14.8 percent a year ago. Viewed a March, and down from 53.5 percent a The typical monthly mortgage payment
different way, zip codes in the top one- year ago. The all-time high was February that Southland buyers committed
third of the Southland housing market, 2009 at 56.7 percent. themselves to paying was $1,238 last
based on historical prices, accounted Government-insured FHA loans, a month, up from $1,220 for March, and
for 28.6 percent of existing single- popular choice among first-time buyers, up from $1,038 for April a year ago.
family house sales last month, compared accounted for 38.5 percent of all Adjusted for inflation, current payments
with 23.2 percent a year ago. Over the mortgages used to purchase homes in are 44.6 percent below typical payments
past decade, those high-end areas have April. in the spring of 1989, the peak of the
contributed a monthly average of 33.4 prior real estate cycle. They were 54.6
percent of all sales. Absentee buyers – mostly investors percent below the current cycle’s peak in
and some second-home purchasers – July 2007.
High-end sales would be stronger, and bought 22.5 percent of the homes sold
the overall market recovery more robust, in April, paying a median $201,000. Indicators of market distress continue to
if two key forms of financing were easier Buyers who appeared to have paid all move in different directions. Foreclosure
to obtain: Adjustable-rate (ARMs) and cash – meaning there was no indication activity remains high by historical
“jumbo” loans. Both have become much that a corresponding purchase loan was standards but is lower than peak levels
more difficult to obtain since the August recorded – accounted for 27.7 percent of reached over the last two years. Financing
2007 credit crisis. April sales, paying a median $200,000. with multiple mortgages is low, down
While 44.4 percent of all Southland In March cash sales were a revised 27.9 payment sizes are stable, and non-owner
purchase mortgages since 2000 have been percent. The 23-year monthly average occupied buying is above-average, MDA
ARMs, it was 5.7 percent last month, up for Southland homes purchased with DataQuick reported.
from 4.9 percent in March and up from cash is 14.0 percent. Source: DQNews.com.
1.9 percent in April last year. The “flipping” of homes has also trended
Jumbo loans, mortgages above the old higher over the past year. Last month the BY THE NUMBERS
conforming limit of $417,000, accounted percentage of Southland homes flipped –
for 16.1 percent of last month’s purchase bought and re-sold – within a three-week Percentage of Pickford Escrow
lending, up from 15.9 percent in March to six-month period was 3.4 percent, 22.4: openings this year to date
(through May) that are Short Sales.
and from 11.1 percent in April 2009. while a year ago it was 1.3 percent. Last
Before the credit crisis, jumbos accounted month it varied from as little as 2.7
for 40 percent of the market.
While financing restraints have hampered
percent in Riverside County to as much
as 3.8 percent in Los Angeles County.
76: percentage of Consumers Favor
Renting to Homeownership –
DSNews
high-end activity, the more affordable MDA DataQuick, a subsidiary of
housing markets have seen sales taper Vancouver-based MacDonald Dettwiler percent of April’s home purchase
off in recent months as the inventory and Associates, monitors real estate 43.4: transactions that were first time
of deeply discounted foreclosures has activity nationwide and provides homebuyers, a significant drop from March’s
dwindled. information to consumers, educational figure of 48.2 percent according to the
institutions, public agencies, lending Campbell/Inside Mortgage Finance Survey
Foreclosure resales accounted for 36.4
percent of the resale market last month, institutions, title companies and industry
analysts.
99: percentage of people that really want an
down from a revised 38.3 percent in iPad but don’t know what to do with it
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