Los Angeles County Real Estate Sales Soar in July
An increase in the amount of homes for sale in Southern California helped Los Angeles County Real Estate sales to reach an eight-year high for the month of July.
According to an article in the Los Angeles Times and a recent report by California-based DataQuick, the average sales price for a home in Southern California was $385,000 in July, nearly the same as the prior month, but rose about 26% from a year earlier.
The article states, “While the price increases took a slight breather over the month, sales soared. Buyers purchased 25,419 new and resale houses and condos in July, 23.5% more than a year earlier and the strongest July since 2005.”
It appears that buyers in the Southern California market have become more confident because they have put more of their own money into residential real estate. According to an article on DQNews.com, “In July they paid a total of $5.39 billion out of their own pockets in the form of down payments or cash purchases. That was up from $5.25 billion in June and up from $3.61 billion a year ago.”
The increase in sales for July is due mostly to rising home prices and partly to the market mix. According to DataQuick President John Walsh, “July home sales came in very strong, and we think a lot of the increase in activity can be chalked up to a rising inventory of homes for sale. The jump in mortgage rates a couple of months back might have spurred more buying, too.”
The market has shown less low-end sales because of the improving economy, a smaller supply of homes available, and increasing mortgage rates. According to the article, “Buyers in Los Angeles, Ventura, Orange, San Diego, San Bernardino, and Riverside counties purchased significantly more homes priced $500,000 or higher in July than a year earlier, while sales of homes below $300,000 fell.”
Indicators of market distress continue to decline for Los Angeles County Real Estate. DataQuick reported that foreclosure rate activity remains well below peak levels, financing with multiple mortgages is very low, and down payment sizes are stable.
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