Bargain hunters bought many foreclosed properties in affordable neighborhoods last month, pushing the number of sold homes to its highest level in more than a year.
By: Steven Jones: Property I.D.
In Riverside, Los Angeles, San Diego, Ventura, San Bernardino and Orange counties, 20,329 homes were sold last month, up 16.7 % from 17,424 last month and up 13.8% from 17,787 in July of last year.
Last month was also significant in the fact that it was the highest month by transactional volume since March of 2007, and the first month since September 2005 to rise above the year ago level.
Low prices in neighborhoods ravaged by foreclosure, and homes bought or refinanced during the price peak with expensive mortgages have been the primary drivers of southland home sales as of recent.
The fall of the median house price, which was $348,000 last month, down 2% from June and down 31% from the peak of $505,000 in July 2007, can be attributed to considerable depreciation and the sharp decline re-financing in the jumbo category, which has recently increased from $417,000 to a conforming loan limit of $729,750. 40% of all homes sold before August of 2007 were financed with jumbo loans, while only approximately 16% involved jumbo loans in the prior month.
With prices down over 30% since the price peak, and foreclosures representing 43.6% of all sales last month, this scenario could only be called a quintessential buyer's market, with many bargains still out there. Last month is evidence that the market could be seeing a bottom, and prices may be on the rise sooner than expected.
By: Steven Jones: Property I.D.
In Riverside, Los Angeles, San Diego, Ventura, San Bernardino and Orange counties, 20,329 homes were sold last month, up 16.7 % from 17,424 last month and up 13.8% from 17,787 in July of last year.
Last month was also significant in the fact that it was the highest month by transactional volume since March of 2007, and the first month since September 2005 to rise above the year ago level.
Low prices in neighborhoods ravaged by foreclosure, and homes bought or refinanced during the price peak with expensive mortgages have been the primary drivers of southland home sales as of recent.
The fall of the median house price, which was $348,000 last month, down 2% from June and down 31% from the peak of $505,000 in July 2007, can be attributed to considerable depreciation and the sharp decline re-financing in the jumbo category, which has recently increased from $417,000 to a conforming loan limit of $729,750. 40% of all homes sold before August of 2007 were financed with jumbo loans, while only approximately 16% involved jumbo loans in the prior month.
With prices down over 30% since the price peak, and foreclosures representing 43.6% of all sales last month, this scenario could only be called a quintessential buyer's market, with many bargains still out there. Last month is evidence that the market could be seeing a bottom, and prices may be on the rise sooner than expected.
