SoCal Home Price Climb as Foreclosed for Sale Slow

As the pace of foreclosed for sale slowed down in Southern California, the median home sales price in July rose by about one percent from June, according to data from a real estate firm in the region. The one-percent increase was the third straight monthly gain.

According to analysts, the price gain arose from the increase in sales of properties in higher-cost areas and the drop in sales of lower-priced foreclosures.

The median home sales price in July was $268,000, higher than the median in the previous month, but lower by 23 percent than the $348,000 median price in July 2008.

Home sales also increased in July by almost 19 percent to 24,104 units, compared to July 2008. The July sales marked the 13th consecutive month that sales increased on a year-over-year basis.

The percentage of foreclosure sales in July was approximately 43 percent of total July sales, the lowest percentage since June 2008. The sold repossessed properties were located mostly in inland areas.

Meanwhile, home sales in higher-cost areas, such as coastal neighborhoods, increased as jumbo loans became available. The limits for FHA conforming loans were increased under the American Recovery and Reinvestment Act in February, pushing the limit to $729,750 for higher-cost areas.

The percentage of sales of single family houses priced at $500,000 and above increased to over 20 percent of total houses sold in July, higher than the 15-percent share in March, the lowest percentage so far this year.

In July 2008, the percentage of sales of homes priced above $500,000 was over 27 percent of total sales.

Total home sales in Southern California increased to a record pace in July, making the July pace this year the fastest pace among all months of July since 2006 and the fastest pace among all months since December 2006.

More than 24,100 housing units across Southern California were sold in July, including condos, new homes and existing homes. July sales marked an increase of 3.6 percent from sales in June and an increase of nearly 19 percent in July 2008.

Home sales during the month of July ranged from the 16,225 units sold in July 1995 to the 38,996 units sold in 2003.

According to Southern California analysts, the increase in home sales was driven by increased home affordability, lower mortgage rates, FHA financing assistance for first-time home buyers, increased demand from investors and increased financing for jumbo loans.

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