Southern California Homes Sales for July 2012

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According to DQ News Southern California home sale rose for the seventh consecutive month to 20,588 for the month.  This was down 6.7 from the 22,075 in June, but up 13.8% from July of 20122.

The median price also rose to $306,000 and that’s up from the $300,000 from June and up 8.1% from the $283,000 in July 2011. July’s median was the highest since the $308,500 in September 2008.

Demand is up due in part to historic low mortgage rates, but also to a huge drop in foreclosure sales.  Plus there’s been a proportional increase in homes sold in higher end areas.  Last month 22.5% of all homes sales were $500,000 or more

“Even adjusting for changes in market mix, there’s growing evidence prices have crept up in areas where more demand has met a shrinking number of homes for sale. But we’re approaching the peak of the traditional spring-summer home-buying season. Whether these trends hold into the fall and winter isn’t clear. If they do, then logically the number of homes on the market would eventually rise to meet the demand. More owners will be interested in selling, knowing their homes are likely to fetch a higher price, and more people will shift from a negative to at least a slightly positive equity position, enabling them to sell. Home builders could rev up operations and lenders could push more distressed properties onto the market sooner. It would tame any price appreciation,” said John Walsh, DataQuick president.

July’s sales were 19.4% lower than the long term average for the month of July with the high being 38,996 in July 2003 and the low 16,255 in July 2005 at the bottom of the last cycle.

Distressed sales were 39.7% of the total and this is the lowest since January 2008.  Of the 39.7%, 21% were foreclosures, down from 24.4% in June and 32.6% a year earlier.  The high was an almost unbelievable  56.7% in February 2009

Short sales were 18,7% of the total, up slightly from the 17.7% in June and 17.4% the year before.