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Latest Data Quick numbers

The Data Quick numbers for the Bay Area and Southern California were released yesterday. I’m already reading headlines such as “Dramatic Drop in California Home Prices”. What this article didn’t say (and what I doubt other articles will not include too) is what Data Quick said in their Bay Area press release-

“In addition to undermining sales, the dropoff in jumbo use helps explain why the median price has fallen so sharply. With fewer high-end coastal homes selling, the pool of sales from which a median can be derived skews toward the lower-cost homes that are selling best.”

Here are other statements from the press releases-

Southern California:

“The number of Southern California homes sold last month edged up to its highest level in more than a year as bargain hunters swept up foreclosure properties in affordable neighborhoods, a real estate information service reported.”

“”What we’re looking at is a fire sale of properties in newer affordable neighborhoods that were bought or refinanced near the price peak with lousy mortgages. What we’re still not seeing is this level of distress spreading to more expensive or established neighborhoods,” said John Walsh, MDA DataQuick president.”

“Foreclosure resales continue to be a dominant factor in today’s Southern California market, accounting for 43.6 percent of all resales. That was up from a revised 41.8 percent in June, and up from 7.9 percent in July 2007.”

Data Quick also reported a 31.1% drop in So Cal median home price from July 07 to July 08.

Bay Area:

“Bay Area home sales eked out their first year-over- year gain since early 2005 last month as buyers responded to price cuts and snapped up more inland foreclosures. The median sales price dove to a 53- month low, a real estate information service reported.”

“Foreclosure resales — homes sold in July that had been foreclosed on in the prior 12 months — made up 33 percent of all resales. That was up from 29.9 percent in June and 4.2 percent in July 2007. Foreclosure resales ranged from 4.6 percent of the resale market in San Francisco to 65.9 percent in Solano County.”

“Meanwhile, many would-be sellers wait for a healthier market and many would-be buyers, especially those eyeing costlier coastal homes, wait for signs of a market bottom or for the return of more favorable financing. A clearer picture of the entire housing market will emerge once more of these foreclosures burn off and more lenders, sellers and buyers get off the sidelines and back into the housing game.”

“Since the credit crunch hit last August, making “jumbo” mortgages over $417,000 more expensive and harder to obtain, the percent of Bay Area homes financed with jumbo loans has plummeted. Last month jumbos made up 32.3 percent of all home purchase loans, down from 63.1 percent in July 2007.”

Written by Keith Byrd - Go to Keith's Website/Profile