REO and Overall Home Sales Up in California

REO and Overall Home Sales Up in California, DataQuick Report Says
Carrie Bay 08.20.08

According to a report released by MDA DataQuick today, 44.8 percent of properties sold in California during July were REOs, up from 42.5 percent in June. Only 7.6 percent of California home sales were comprised of REO properties in July of 2007. DataQuick said a total of 39,507 homes – including REOs, owner resales, and new homes – were sold in California last month. That figure is up 12.2 percent from 35,202 in June and up 12.3 percent from 35,185 in July 2007.Based on DataQuick's numbers for California, the median price paid for a home last month was $318,000, down from $328,000 for the month before, and $478,000 a year ago. DataQuick cites half the drop in median price as a result of depreciation, the other half due to shifts in the types of homes selling and how those homes are financed.

The typical mortgage payment in California last month was $1,501, the real estate research company reported. That was down from $1,543 in June, and down from $2,316 in July a year ago. According to DataQuick , mortgage payments are back to where they were in early 2002, and are 41.7 percent below the current real estate cycle's peak in June 2006. It is no mystery that the California housing market is experiencing far-reaching adversity and has been one of the hardest hit states by the national mortgage crisis, but are we beginning to see a glimpse of recovery, or at least a plateauing of the downward spiral? Indicators of market distress continue to move in different directions in the Golden State, DataQuick cautioned.

Foreclosure activity has reached record levels, but financing with adjustable-rate mortgages (ARMs) is near an all-time low; down payment sizes and flipping rates are holding steady; and non-owner occupancy buying activity is flat, the research company reported.MDA DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies, and industry analysts. The company's numbers cover all sales, new and resale, houses and condos.