Wednesday, August 15, 2007

L.A. Times: Southland home sales hit 12 year low

Out there is a layer of helium, perhaps mixed with a little hemp smoke, that is levitating the median house price in Los Angeles. According to an August 15 story by Annette Haddad, ALL southland counties are showing substantial declines in sales volume. Four out of six counties show declines in median price, one county is flat, and only Los Angeles county continues to show median price gains.

July sales for the record:

County        Median      %YOY       # sold         %YOY
              Price       Change                    Change
Los Angeles   $547,500    +5.3%      6,809          -23.0%
Orange        $640,000     0.0%      2,391          -19.8%
Riverside     $399,000    -3.9%      2,769          -41.9%
San Bernadino $355,000    -3.1%      2,008          -42.6%
San Diego     $489,000    -2.2%      3,106          -13.3%
Ventura       $582,500    -5.1%        784          -16.7%

Market observers freely admit that it is the sale of pricier high end homes that is keeping this market afloat.

"Aside from running outside naked, I don't know what to do to reach people who might want to find this house," lamented one homeowner forced to sell because of skyrocketing monthly payments.

At least some experts are now conceding that the slowdown could spread to the pricier areas before much longer. Michael Carney, a real estate professor at Cal Poly Pomona, thinks prices might fall 5% a year through 2009 before things start to pick up again.

But there may be a growing backlog of frustrated sellers who can't wait.

4 Comments:

Blogger Rob Dawg said...

See that Ventura number? Amgen just announced massive layoffs. You know Amgen, they are right across the freeway from Countrywide.

2:35 PM, August 15, 2007  
Blogger Paris2LA said...

'At least some experts are now conceding that the slowdown could spread to the pricier areas before much longer.'

Jumbo loan rates have jumped lately so the *increases* in median price that the industry likes to get into headlines will disappear by the time Q4 numbers.

I'm in Thousand Oaks, and have worked at Amgen and Countryfried. There will be fewer than 900 Amgen jobs lost in TO this year, but it will be ongoing. The Countryfried implosion will be a bigger impact. Every week I meet some idiot who just moved out here for a Countryfried job!

12:48 AM, August 16, 2007  
Blogger Rob Dawg said...

The average Amgen salary is %160k. All of it local injection. Multiplier effect of 3. $160k x 900 x 3 = $400 million hit to the local economies.

7:09 AM, August 16, 2007  
Blogger wannabuy said...

You know Amgen, they are right across the freeway from Countrywide.

Ouch. Anyone want Ventura office space? ;)

Rob Dog, add to your multiplier a subtraction as people can no longer MEW their way to prosperity.

Got popcorn?
Neil

7:12 PM, August 16, 2007  

Post a Comment

<< Home

Dogmation