We examined 52 major cities spread over 7 regions in Southern California in order to comprehensively analyze the housing market. We compared key statistics from February 2010 with February 2009 in order to determine how the Real Estate market fared over the course of a year.
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Summary of Key Points |
Total Units Sold in South Ca (52 cities analyzed) in Feb 09 were 8,937 and 7,683 in Feb 10 (a drop of 14.03%)
Big Picture: There were no big surprises in Southern California and the market in general is on the rise.This is a complete reversal of the falling price trend we have been noticing for a long time. Out of all the 7 markets examined, LA Central and Orange performed best with Long Beach, LA West and San Fernando Valley posting solid gains while Inland Empire market was worst out of the lot and LA SG Valley remained unchanged
Median Sales Price
Of the 7 markets we examined 4 of them featured an increase in median sales price. Out of the 3 markets that saw a decline in median sales price LA central saw a decline of 1.04% or from $529,500 to $523,981. A drop of $5,000 in sales price is pretty negligible thus revising our first statement, out of 7 markets only 2 saw a decline in median sales price. Inland Empire and LA West saw their median sales prices going down from $242,615 Feb 09 to $223,811 Feb 10 (-7.75%) and $1,850,548 Feb 09 to $1,669,602 Feb 10 (-9.78%) respectively. The biggest gains were seen by LA SF Valley and Orange. Prices in LA SF Valley jumped up from $412,531 to $492,231, a gain of 19.32%. Orange is the ultimate winner in this category with prices rocketing up 27.59%, from $$596,219 to $760,705.
Median Days on Market
Everyone except LA Central saw their median days on market going up. A house in LA Central spent 72 days on the market in Feb 09 and that number went down to 59 for Feb 10, a decline of 17.40%. Which markets saw the largest delays in house sales? Out of the 6 markets that experienced increases in median days on market, Orange, LA SF Valley, and LA Long Beach saw the largest delays. In Long Beach median days on market went from 40 days in Feb 09 to 62 days in Feb 10 (54.13%). For San Fernando Valley the increase was 42% (49 days to 69 days) and for Orange it was 50% (57 days to 86 days). It is weird to see the median sales price going up and the median days on market also going up.They normally should work inversely. The increase in median days on market across the board for Southern California could be due to delays in getting short sale approvals from lenders.The Bank REO percentages have dropped this year as compared to last year.The corresponding short sale approvals are up and lenders normally delay approving such sales.This could explain the increase in median days on market.
Total Number of Units Sold
Number of units sold took a hit as well, 5 out of 7 markets, a little more than majority saw their total units sold going down from Feb 09. The only 2 markets that saw an increase in this category were LA Central and LA West. Homes sold went up from 423 Feb 09 to 491 Feb 10 (16.08%) for LA Central and from 84 Feb 09 to 94 Feb 10 (11.90%) for LA West. Out of the 5 markets that saw a decline, LA SG Valley’s decline is negligible at -0.65%. So, now we have 4 markets left and out of those the biggest losses were seen by LA SF Valley, Inland Empire and Long Beach. Total Units sold went down 18.67% for Inland Empire (2769 Feb 09 to 2252 Feb 10), 13.20 for Long Beach (197 to 171) and 25.83% for San Fernando Valley (240 to 178).The major reason is the drop in Bank REOs sold,delay in short sale approvals ,backlog with lenders for loan modification requests resulting in reduced inventory available .
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