Over the last 3-years the Los Angeles Real estate sale have been at an all time low. Just recently, the sales shot up for the first time since 2006. In June, many homes were being purchased for well over $500,000, the highest in 30 consecutive months.
A total of 23,262 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties last month. That was up 12.0 percent from 20,775 in May and up 29.0 percent from a revised 18,032 a year ago. Foreclosure remained a big force during the month of June, but the impact they had on the market eased for the third consecutive month. A relief for many in the Real Estate industry. Last months level of resale activity was at it lowest point since February 2009, at 45.3 percent of the southlands sales.
Sales of single-family residences priced at $500,000 and above rose to 19.6 percent of all existing houses sold in June, up from 18.0 percent in May but still down from 29.2 a year ago. The last time the $500,000-plus market made up more than 19 percent of sales was last October, when it was 19.9 percent. Sales of $500,000-plus houses dipped to as little as 13.4 percent of sales in January this year.
The median price took a dive this year because of the heavy shift toward an unusually large amount of sales occurring in lower-cost, foreclosure-heavy areas. The median price over the last few month has been at a very low $265,000 which is actually higher than it was last May, at $249,000. This was the first time the median has risen that much since July of 2007, when the market was at somewhat of a peak, compared to the past few years.
The rising of the median can be looked at the light at the end of the tunnel, so to speak. It shows us that the market is not far off from being back to a more normal sales level. We hope that this shift will make it easier for homeowners to sell and buyers to purchase.
Investors, bought 18.6 percent of the Southland homes sold last month. That’s up from 16.1 percent a year ago but down from 19.5 percent in May. The monthly average since 2000 has been 15 percent. Southland homebuyers appearing in public records with “LLC” in their names, meaning a limited liability company, accounted for about 1.5 percent of June home sales (345 sales). That’s down from a high of 2 percent in April, still well above the average of 0.6% of monthly sales this decade.
Last month the monthly mortgage payment that Southern California buyers paid was $1,193, up from $1,052 the previous month, and down from $1,762 a year ago. Adjusted to inflation, payments are now 46.0 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 55.7 percent below the current cycle’s peak in July 2007.
Foreclosure activity still remains near record levels, with financing with adjustable-rate mortgages is near the all-time low but has recently edged higher. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average in some markets.