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Orange County Home Prices Still Falling

"The market is stuck in low gear," says DataQuick president. The number of sales, however, was up.

Home sales in Orange County rose by 9.2 percent in March, compared to the same month a year ago, while prices fell by 7 percent, a real estate information service announced this week.

A total of 2,856 homes changed hands locally last month, compared to 2,615 in March 2011, according to La Jolla-based DataQuick. The median price of a home in Orange County in March was $400,000, down from $430,000 in March 2011.

Check out the prices and sales in your city in this chart.

In Los Angeles County, 6,772 homes were sold in March, up 2.8 percent from March 2011, when 6,590 were sold. The median home price was $306,000 last month, down 4.4 percent from $320,000 in March 2011.

A total of 19,953 new and resale houses and condos sold in Orange, Los Angeles, Riverside, San Diego, Ventura and San Bernardino counties in March, according to DataQuick. That was up 28.1 percent from 15,573 in February, and up 2.8 percent from 19,412 in March 2011.

"The year is young and lots could still change, but the results from the first big sales month of 2012 suggest the market is stuck in low gear," said John Walsh, DataQuick president. "This remains a very gradual -- not to mention fragile -- recovery. Last month's big gain in sales from February was seasonal. A lot more people get out and shop after the holidays and as spring approaches."

The median price for a Southern California home was $280,000 last month, up 5.8 percent from $264,750 in February but down 0.2 percent from $280,000 in March 2011, according to DataQuick.

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jackiezraya April 20, 2012 at 08:31 am
One reason existing refinancing efforts have fallen far short of their goals is that Fannie and Freddie continue to charge homeowners high, risk-based fees up front to refinance their loans you can avoid this if you check your rates and fees at 123 Refinance before you sign
Debbie Ferrari April 20, 2012 at 12:13 pm
Our inventory is very low here in San Clemente as well. And with many of the Short Sales and bank owned property being absorbed it makes for even less inventory. Unfortunately many of the buyers looking here think that San Clemente is like the rest of the county and have a hard time bringing themselves to make an offer and then they end up missing out, because there's someone else that made an offer or at least a better offer! There are some excellant buys out there right now and my advice is that if you are in the market to buy as soon as you can, because you won't see San Clemente prices coming down any more, in my opinion.
CDC April 20, 2012 at 01:14 pm
There will be even better buys when the banks start to clear their foreclosure inventory over the next two years.
MFriedrich April 20, 2012 at 01:42 pm
I think buyers should exercise patience, not "buy as soon as you can". More homes in OC are continuing to go into foreclosure the process. The gov't stimulus plans have failed and are now long over. Notices of default in the county have not abated. Yes, supply appears to be low, but this is artificial and unsustainable with banks' books chock full of REOs (a bank's business is making loans, not holding on to RE property), and no end in sight to more coming in. Buyers should be patient and do careful research, especially on shadow inventory, REO inventory and the local trends in NODs (notices of default).
george gregory April 20, 2012 at 02:43 pm
the next mortgage rate increase will stop any home appreciation.
Not writing new lower rate mortgages to everyone will stop extra possible cash flows from entering the recovery economies of housing and other soft and durable goods the qualifying loans are now based on stated income and not equity,, credit or payment record this has crushed the self employed and commissioned workers in a soft economies ,,, giving privilege to all the civil & corporate employees thus forcing the self employed to seek civil or union jobs or become poor and foreclosed on vote out the fascist incumbents or be France
Doug Pemberton April 20, 2012 at 04:15 pm
If you follow the current trends of large firms buying Bulk REO's such as Oaktree and G8 in Ladera Ranch, you would see that these very firms are hungry for properties to purchase NOW. GTIS partners has allocated $1 Billion to purchase single family homes, Oaktree Capital Management has a fund of $450m to purchase these very same properties, G8 Capital as well has allocated a large amount of funds for these very same properties. So this talk about the Shadow Inventory and thinking that the market will be flooded once again by foreclosures is a bit of a leap if you consider the amount of Hedge funds, Equity firms and the like that will scoop up these homes to buy and hold for Rentals. The reason is that they forecast the market to be appreciating for the next five years.
These very firms are now bidding up the bank owned pools and paying as much as 95% of FMV. With the lack of inventory right now, this is anything but Artificial or Unsustainable. Speculators and make their case however being in the trenches and seeing this first hand leads me to believe we have hit bottom. The montra here should be "Catch the Bottom"
Matt Davis April 21, 2012 at 12:50 am
The two groups that this market is affecting most are simply the current buyers and sellers. Anyone who is on the sidelines and does not have the need or desire to buy or sell, should be able to comfortably ride out this latest debacle. For those who are in the unfortunate position of having to sell, by either short sale or some other significant issues, will do what they need to do. The market and current investor appetite for homes is growing. It is evidenced by the homes that are priced at or below market and are drawing multiple offers. For the owners that purchased homes prior to the run up in prices or those that committed large down payments and can be considered "Equity Sellers", they have the challenge of competing with fire sale prices.
Both sellers and buyers will find that they can still meet their required objectives and close escrow, getting a great buy or selling at a reasonable price. It will take a bit of work but with the right expert advice, it can be done. As of 8:30 pm, San Clemente has just 209 active homes for sale listed in the MLS. With a population of over 63,000 according to the 2010 census statistics, that is the lowest in years, especially compared to Laguna Beach and their 22,000 plus residents, they have 243 homes currently available. Will the fabled "shadow inventory" have an effect, absolutely, but as Doug lays out in his piece above, the effect will be muted at best. The big money players recognize that the deals are out there.
Panglonymous April 21, 2012 at 02:06 pm
Dear people who believe that everything is and and should be the market and that the market should determine all.
The market for productive employment i.e. a good stable job which in its turn provides stability for a family and by extension a succeeding generation as they move through adolescence into higher education into a good and stable job marry have children and repeat the process... ...this market for productive employment this market made of people persons citizens these people need a stable market in HOMES not a shakedown machine equivalent to the stock and commodity markets the home has an accumulated meaning and purpose far greater than any appreciating or depreciating market instrument... ...no less than our natural resources which if stewarded instead of plundered for short-term gain if approached with a goal of balance stability and reciprocal relationship can sustain us and we them... People are not products. Why must we run them through these cold harsh machines these life and spirit sucking processes extrude them into molds like living coffins and insist that they be cheerful positive proactive and gay? Have we any decency? Have we greater dreams for the whole of humanity? Have we not, at the bottom of it, the courage to STOP?
fra sarpi April 22, 2012 at 02:10 pm
market dynamics:
www.youtube.com/watch?v=1G9Lpbf4bPA&feature=related
Panglonymous April 22, 2012 at 05:04 pm
A - Silence is golden B - I believe in my percentage
fra sarpi April 23, 2012 at 12:57 pm
Yes, silence of real intentions, buying people off and using code words/issues that play people, based on base desires, into their agenda and world view.
SPK April 23, 2012 at 02:21 pm
VIX is up 10% today, go figure...ECB cash bailout of 1.2 trillion has been already spent and the larger european economies such as Spain and Italy are now starting to show signs of major weakness. More ECB financial support is needed but unlikely due to it essentially comes from Germany and France whose banking systems cannot support another trillion or so not to mention the political backlash of doing so. The euro banks have been floating the inevitable by buying up sovereign debt with borrowed monies from the ECB. Without more ECB support, the Euro zone is poised for a major crash this spring/summer. The net effect will hit our banking system hard...i would not trust any bullish sentiment in the current housing market and those REO players mentioned above could potentially lose significant principal going forward and a dividend of 5-7% won't make that up.
fra sarpi April 23, 2012 at 08:45 pm
Good read, but real estate is probably as good as anything to be invested in. In Europe, they've got an impossible situation that is requiring super cooperation week in and out. Now Hollande, (Socialist), got more votes than Sarkozy, and they are heading to a May 6th election. Sarkozy will have to lean towards the National Front to compete, which is anti euro & globalism. Hollande is anti austerity. So either way the writing is on the wall.
CDC April 24, 2012 at 06:47 pm
Location, location, location.
All depends on the demand in the AREA. Also, the number of foreclosures in the given AREA which directly effect demand and price. However, there will be a ton of foreclosures cleared from the books in the next two years. This is a fact. Will be great for buyers and hell for flipper sellers and realtors. Buyers will be able to haggle prices WAY down if the foreclosed house two blocks down is selling for a couple of hundred thousand less and is in the same development. Hope your not a realtor! Buckle up for a spendthrift ride. We have not even come close to hitting bottom!
Doug Pemberton April 28, 2012 at 12:37 am
San Clemente Homes for sale:
As of 7:30pm April 27, 2012 San Clemente has a total of 195 active listings. San Clemente has 61,610 approximate residents. Last week at this time "Matt Davis" had posted on San Clemente Patch that we has a total of 209 active listings. That is a 9.33% change from last week. Well we are selling here in San Clemente. Although I cannot predict the future of sales, I can see the trends and see first hand what buyers are asking for. The frustrations of buyers right now is consistent. The consistent theme is: Where are all of the properties? They (The Buyers) are hearing the market is slow and that the market is flooded with foreclosures and short sales. So they should find these types of properties to get huge discounts and find that perfect deal. Well that may or may not be true. If you look at what the percentage of discount on sales of Bank Owned or Short Sale listings vs. Standard sale listings, you can see the gap has narrowed. Typically a short sale home would be sold at 15% on avg below a standard sale in Orange County. This really is no longer the trend. There is very little discount of a short sale vs. Standard sale. This means Short Sales and Foreclosures are moving in our Orange County market.
John Inman May 14, 2012 at 12:02 am
prices are on the way down, dont believe any realtor...
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