Homes Sales Down Nearly 20% in O.C.

Home sales in Orange County dropped 18.2 percent in May, compared to the same month a year ago, while prices dipped by 5.6 percent, a real estate information service announced Monday.

A total of 2,664 homes changed hands locally last month, compared to 3,257 in May 2010, according to La Jolla-based MDA DataQuick. The median price of a home in Orange County in May was $425,000, down from $450,000 in May 2010.

In Los Angeles County, 5,983 homes were sold in May, down 18.3 percent from May 2010, when 7,320 were sold. The median home price was $320,000 last month, down 7.2 percent from $345,000 in May 2010.

“A year ago we were talking about sales reaching a four-year high as buyers rushed to take advantage of expiring federal homebuyer tax credits," said John Walsh, DataQuick president, on the company's website. "Now sales are stuck at a three-year low. The government stimulus is long gone and some of the fundamental drivers of housing demand have yet to strengthen enough to lift sales to even average levels.

"Some of the key culprits are weak job growth, tight credit and a hesitancy among potential buyers and sellers, who question whether this is the best time to make their move,” Walsh said.

“So here we sit in the market doldrums,” he continued. “Two of the more likely sources of fresh wind in the market’s sails would be a pickup in hiring or further home price reductions.”

A total of 18,394 new and resale houses and condos sold in Orange, Los Angeles,
Riverside, San Diego, Ventura and San Bernardino counties in May, according to DataQuick. That was up 0.3 percent from 18,344 in April, and down 17.4 percent from 22,270 in May 2010.

According to DataQuick, May home sales were the lowest for the month in three years.

The median price for a Southern California home was $280,000 last month, the same as April but down 8.2 percent from $305,000 in May 2010, according to DataQuick.

—City News Service