Thursday, June 19, 2008

California report from DQ, sales down 10.7%

DataQuick has release the state report. Although a few areas like parts of the IE are selling above last year most of the state is still tanking. Here's my secret solution to turn this around. LOWER THE PRICES!

A total of 33,024 new and resale houses and condos were sold statewide last month. That was up 6.0 percent from 31,150 in April and down 10.7 percent from 36,975 for May last year. Last month's total made for the slowest May since 1995 when 32,223 homes sold.

Of the homes sold in May, 38.3 percent were foreclosure resales, up from a revised 37.6 percent in April and 5.4 percent in May a year ago.

The median price paid for a home last month was $339,000, down 4.2 percent from $354,000 for the month before, and down 30.0 percent from $484,000 for May a year ago when the median was at its peak. Around half the drop in median is due to depreciation, the other half due to shifts in the types of homes selling, and how those homes are financed.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,569. That was down from a revised $1,645 in April, and down from $2,266 for May a year ago. Adjusted for inflation, mortgage payments are back to where they were in mid 2003. They are 23.3 percent below the spring 1989 peak of the prior real estate cycle. They are 38.0 percent below the current cycle's peak in June 2006.

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