Tuesday, January 15, 2008

Riverside Median drops $100k in one year

Riverside* median home prices are off 26% from peak. According to Housing Tracker Riverside median peaked in May of 2006 at $485k. Currently the Riverside median selling price is $360k. That’s a drop of 26% from peak. That’s over a 20 month period. That sounds bad, however most of that decline happened in the last year and the decline is accelerating. As of last January the median selling price was $460k. In 12 months the Riverside median price has dropped $100k or 22%. In addition to the 22% drop in prices the inventory is up 35% since last January. This should make for an interesting Spring!

* Housing Tracker does not track the entire county. These numbers are for the following areas, Arlington, Bloomington, Box Springs, Canyon Crest, Casa Blanca, Colton, Corona, Crestmore, Fontana, Grand Terrace, Jurupa, La Sierra, Mira Loma, Moreno Valley, Norco, Perris, Rubidoux, and Woodcrest


Here is the latest report from DataQuick with the numbers for the entire county.

La Jolla,CA----The remarkably low level of home sales in Southern California persisted last month as sellers, buyers and lending institutions continued to hold their collective breath amid market turmoil.
A total of 13,240 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in December. That was up 0.5 percent from 13,173 for the previous month, and down 45.3 percent from 24,209 for December last year, according to DataQuick Information Systems.
Last month's sales were by far the lowest for any December in DataQuick's statistics, which go back to 1988. The sales count was 23.5 percent below the previous December low of 17,272 in 1990. The average December over the past 20 years is 25,543, the all-time peak for the month was reached in 2003 when 36,865 homes were sold.
"It looks like anybody who can, is waiting this thing out. Which of course means that the activity we are seeing right now is largely stressed and atypical. Today's numbers form a lousy basis for trending and forecasting. We're in the midst of turbulence and we won't know what really has been going on until things have settled down and we can look back," said Marshall Prentice, DataQuick president.
The median price paid for a Southland home was $425,000 last month, the lowest since $420,000 in February 2005. Last month's median was down 2.4 percent from November's $435,000, and 13.3 percent below $490,000 for December 2006.
Last month's median was 15.8 percent below the $505,000 peak reached last spring and summer. While the steep decline in median sales price does reflect a drop in prices, it also reflects significant shifts in the types of homes selling. Particularly noticeable is a drop-off in sales of more expensive homes financed with "jumbo" mortgages.
Since the credit crunch hit in August, these loans for over $417,000 have become more expensive and harder to obtain. Sales financed with jumbo loans represented about 22 percent of Southland transactions last month, down from nearly 40 percent before the credit crunch.
The median price paid for a home financed with a conforming loan was $386,250 in December, down 4.6 percent from $405,000 a year ago, and down 5.8 percent from the $410,000 peak reached in March and April of 2007.
The typical monthly mortgage payment that Southland buyers committed themselves to paying was $1,985 last month, down from $2,049 the previous month, and down from $2,242 a year ago. Adjusted for inflation, the current payment is 6.9 percent lower than the spring of 1989, the peak of the prior real estate cycle. It is 21.2 percent below the current cycle's peak in June 2006.
Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages or with multiple mortgages has dropped sharply. Down payment sizes and flipping rates are stable, non-owner occupied buying activity is edging up, DataQuick reported.

...........Dec 06...Dec 07 ...Chg ...Median 06...Median 07 ...Change
San Berdu...3,357 ...1,518...-54.8%..$370,000....$315,000...-14.9%
San Diego...3,823 ...2,468...-35.4%..$495,000....$430,000...-13.1%
Orange co..2,985 ...1,731...-42.0%..$630,000....$565,000...-10.3%
...LA.... ..8,479 ...4,430...-47.8%..$525,000....$470,000...-10.5%


Lookingincorona said...

Great news for those of us waiting to buy in the IE. I'm trying to hold off buying something as long as I can so but I might be forced to buy something soon. Hopefully the prices will crash even faster in the next few months!

papasmurf said...

How can you be forced to buy? Is the wife nto giving you any until you buy a house? Just show her this website. Tell her to wait a year and the house payment will be $1000 a month cheaper. Tell her she can spend 25% of the savings on herself, you get 25% and the other $500 goes into the 401K.

Briar said...

You might want to take a look at a couple neighborhoods in Ontario. Here's a gem:

Built and bought in 2004 for $441k. It's been on the market 152 days at a listing price of $710k!

According to Ziprealty the price hasn't been dropped once in those 152 days. This guy hasn't watched the news in over 152 days.

There's a whole bunch of fantasy pricing in this area of Ontario. And here's the kicker: It's just a couple blocks north of the airport. Imagine the noise!

Anonymous said...

While I'm truly sorry for the people losing their homes....I'm so excited for me! Great way to way up this a.m. Thanks. :)