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Huge Reversal in California's Sales; Prices Slip

by devteam September 16th, 2013 | Share

Between a slight decrease this month and a massive negative revision to the previous month, the California real estate market turned on a dime according to San Diego based DataQuick’s release of Augustrnsales figures and revised numbers for July. rnThe firm reported that sales were down 1.9 percent in August to 42,546rnunits from revised sales of 43,381 in July. rn</p

The July revision is significant.  When data was originally released last monthrnthose sales had been reported at 48,118 units, 7,091 units more than in June, arnphenomenal one month gain of 17.3 percent. rnThe revised increase of 2,354 units, while still a healthy bounce of 5.7rnpercent is no longer in the realm of stratospheric. </p

August sales figures were 3.1 percentrnhigher than sales in August 2012 (41,280) and were the highest for any Augustrnsince 2006 when 51,054 homes were sold. rnDataQuick said since it began keeping records in 1988 sales in Augustrnhave averaged 47,849 units; August 2013 sales estimates were 11.1 percent belowrnthat average.</p

The median price paid for a home inrnCalifornia last month was $361,000, down 0.6 percent from $363,000 in July andrnup 28.5 percent from $281,000 in August 2012.  While August was the 18th month inrnwhich the median sale price rose on an annual basis, the amount of that increaserneased slightly from the 29.2 percent growth rate from July 2012 to Julyrn2013.  The peak median price inrnCalifornia was reached in the spring of 2007 at $484,000 and the he post-peakrntrough was $221,000 in April 2009.</p

Of the existing homes sold last month,rn7.8 percent were properties that had been foreclosed on during the past yearrnand 13.2 percent were short sales. rnForeclosure sales had an 8.3 share in July and a 20.0 percent share inrnAugust 2012 and had peaked at 58.8 percent of sales in February 2009.  Short sales were down from a 14.4 percent inrnJuly and 26.4 percent a year earlier.</p

DataQuick said that indicators of marketrndistress continue to decline. Foreclosure activity remains well below year-agornand peak levels reached several years ago. Financing with multiple mortgages isrnlow, while down payment sizes are stable.

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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