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.