The Southern California Multiple Listing Service reports that June sales jumped 10% last month from the year before, but still generated 18% less cash.
Hefty price cuts reduced total sales volume on resale houses and condos to $1.3 billion last month, SoCal MLS reported. That compares to $1.6 billion in cash generated in June 2007.
House sales increased 18.6% to 1,446 units in June, but median prices fell 27.5% to $545,600 (vs. $752,100 last year), SoCal MLS reported. Sales of condos, townhomes and other attached homes fell 3.9% to 749 units. At the same time, the median price for attached units fell 23.9% to $350,000 (vs. $460,000 last year).
More June numbers are due out next week from DataQuick.
Read more …
- Regulators shut down IndyMac
- Value of home resales fell 48.6% in March
- LA/OC home prices off 23%, by the square foot
- Mid-June home pricing near 1st gain since Nov.
- O.C. homes seen as 25% less unaffordable
- Big Orange property index takes worst hit in 13 years
- O.C. home affordability jumps in 2008’s first quarter
- SoCal home woes could mean 50% price drop
- O.C. homes seen as undervalued; 1st time since ‘03
- Chapman sees O.C. home price down 9% in ‘09
Wow, Realtors might have to get real jobs. What a concept!!!
Soon the survival instincts of the real estate industry will kick in…the NAR will tell its members to start demanding price reductions on homes so that the market volumes will pick up. If revenue continues to fall, the NAR will not be able to collect fees, and will have to stop the propaganda efforts that let to people believing that homes can only go up in value.
Real estate agents must be in world of hurt at this point, especially after being told time and time again that we are at the bottom.
Wow, there’s your big spring bounce. As we head into the last half of summer, say goodbye to it. Although I’m not sure what exactly was bouncing there.
There’s plenty of good news in the pipeline for Realtors. I’m sure when Freddie Mac and Fannie Mae go insolvent that will be the sign we’ve hit bottom!
Or not.
So sales are UP over June of last year, number of Realtors are down (more than 18%??), so does that mean surviving Realtors are earning about the same as last year? Doing better than the builders and bankers.
If this data inline with DQ’s, then isn’t an increase in resale units a good thing??
What you guys are witnessing is the nationalization of the mortgage and housing industry. when all is said and done 30% of lending and housing will be controlled by the Feds
Those darn Realtors…real jobs huh…like running a website. :)
“Bitter Bubble Buyers get Burned Badly“
The bubble buyer’s last hope is fading fast.
This Freddie and Fannie conundrum is going ruin the entire housing bailout.
If the government has to take either one over, the entire financial system will crash.
If they are unable to operate, the implications will be dire.
Higher interest rates and restricted loan structures will seriously limit the buying capability.
This really is the perfect storm!
dont forget Bitter Baby Boomers
National Bubble:
I wish I had a “real” job like yours. Then I would have time to post on a blog all day long, too. My “fake” job as a Realtor keeps me too busy to waste so much time each day.
OC Native Says:”I wish I had a “real” job like yours.”
I’m sorry to hear that OC Native but in order to have a job like mine, you need a brain.
NationalBubble,
Having IndyMac go down should prove without a doubt how serious this housing crisis is becoming.
When will congress and the treasury figure out that trying to save artificial housing prices is not worth bankrupting the entire nation.
The greed of a few is more important than saving the country, in their eyes.
Yes Bill…I agree, like spending all of our time and resources for alternative fuel when oil is in the ground right here at home.
rants Says:
July 11th, 2008 at 3:26 pm
“foreclosure filings surged
52% annually last month
but rest assured that
the government will jump right
in and save the day- just like
spiderman LMAO”
Have you been watching Family Guy? As Spiderman said, everyone gets one rescue.
Mulliganville Says:
July 11th, 2008 at 6:07 pm
“Yes Bill…I agree, like spending all of our time and resources for alternative fuel when oil is in the ground right here at home.”
Considering that the RE industry can no longer be the primary engine of economic growth, America needs new and innovative industries to compete against of the world. Old technology like fossil fuels isn’t going to do it.
I just saw the news about the closure of Indymac. There was a post earlier saying that Indymac was requiring all mortgage brokers to pay up to keep their rate locks just last week. Wow, I’m so sorry if any of you were caught up in that meltdown. All those loans in process now need to find a new home. I wonder how many of the “pendings” on Thomas’ list were going to be funded by Indymac?
On a different note, I promised to post the Median History from 2005- present for Apr-Sep so we could see seasonality and how the median moved up or down:
Median…..2005…..2006…..2007…..2008
Apr………..$576K..$628K..$629K..$500K
May……….$590K..$635K..$635K..$485K
Jun……….$603K..$646K..$645K..$490K (estimated)
July……….$601K..$639K..$640K
Aug……….$617K..$633K..$642K
Sep……….$610K..$626K..$570K
I will say that it is hard to get a read on the above median history. But if 2008 is anything like 2007 (2007 would be “good” at this point), then June should’ve been the “peak” (2005 was an aberrant year…the market was still coasting up), and prices should start trending down now, absent Stephen Thomas’ call of the “bottom” at $535K earlier this year.
How much more they will fall really depends on whether Fannie and Freddie go belly up. If they do, there is no one to buy any loans at all. How long it will take the government to step in is anyone’s guess. But I have to imagine those 2 entities are right behind Indymac, along with a few more banks out there.
If prices stabilize in 2009, they will probably remain stagnant through 2010, and then, mostly due to run away inflation, I can see them starting back up, if only modestly, keeping pace with inflation.
What will cause another run-up is another dot.com boom. If this happens in the alternative energy field, which it well might, then I could see prices start to really move again.
Can anyone say, “hydrogen engines”?
……….. Fannie & Freddie won’t be allowed to fail……….. they will get bailed out…………. but this is not good for housing……….. loan availability will get tighter and credit in general will be under more scrutiny…….. to avoid future tax payer funding………… interest rates will also go up…….. we are likely going to see a panic capitulation on wall street (on top of the existing staggering bearish losses)….. adding to the misery………. housing will be the last thing on the mind of most americans…….. americans will be concerned about keeping their jobs……
………. best advice…………. alcohol and ice cream………… those staples will comfort the average american through these times……….
Mav-
Life insurance too…sad to say.
And Hersheys Chocolate and Campbells Soup
On a different note…what are the steps down again?
Capitulation is what step?
I just know it is after denial.
What is the last step when we are through the woods and back out into the light?
National Bubble ,
Thats funny because I think Gross over at PIMCO just said he was 99% sure no other banks would fail, the Fed had their backs. Then Freddie and Fannie get into serious trouble and now Indy and I’m sure more to follow but we will save them, we must.
This problem is not over by a long shot and with more resets to come in the form of ALT -A etc…, I see why those who know, expect further declines. They all know the market is F-upped and its just getting worse.
Man, the coming weeks are going to be interesting.
All of this is another nail in the coffin for the growing divide between the rich and the poor. For many years now the poor were able to pretend to be rich as they rented their home from the bank. Home ownership will return to the rich and the poor will rent from them. When the bottom hits, the cash rich will be able to buy up all of the properties because loans will be so scarce. It doesn’t matter how cheap a house is except for those who can actually purchase it.
TO MULLIGANVILLE
YOU ARE STILL ON THIS SITE POSTING. PLEASE CAN WE GET SOMEONE WHO IS INFORMED AND DOESNT TALK OUT OF HIS REAR LIKE YOU.
PLEASE DO UR SELF A FAVOR JUMP OFF ONE OF THE FAILING INSTITUTIONS THAT U SAY DOESNT AFFECT ANYTHING WHEN THEY DO AND HOUSING ONLY GOES UP.
MAYBE THAN SOMEONE MIGHT TAKE INTEREST……….LOLLL
P.S. BUT I DOUBT IT IF ITS U THAT JUMPED WE WOULD ALL YAWN AND SAY HE HAD NO CHOICE
Hwood,
Why are you shouting… on the comment about realtors? They do need to get a real job, they can’t even spell or run a website for that matter. Yes, there are exceptions, but they’re out just like travel agents. We can do it ourselves. It’s “the sign of the times”.