Tuesday, April 13, 2010

Economy News: South California house sales increase in March, "propped up" with FHA-insured loans

A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009, according to MDA DataQuick of San Diego.
“It’s a reflection of just how grim things got, that we’ve now had almost two years of sales gains and we’re still 18 percent below the sales average. ...” said John Walsh, MDA DataQuick president.
Foreclosure resales accounted for 38.4 percent of the resale market last month, down from 42.3 percent in February, and down from 54.8 percent a year ago. The all-time high was in February 2009 at 56.7 percent.
Meanwhile, Uncle Sam continues to prop up lending for many low-to mid-priced homes. Government-insured FHA loans, a popular choice among first-time buyers, accounted for 38.6 percent of all mortgages used to purchase Southland homes in March.

Absentee buyers – mostly investors and some second-home purchasers – bought 21.3 percent of the homes sold in March.

Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.1 percent of March sales. In February it was a revised 30.0 percent – an all-time high. The 22-year monthly average for Southland homes purchased with cash is 13.8 percent.


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2 comentaris:

Tommy said...

I'm glad the housing market in the Southland is regaining some of its strength. So many of those properties never even should have been built, something that it still looks like is in play in San Bernardino county. I don't know if that area will ever rebound significantly, there is just too much quality housing in other areas for people to move that far out of the metro.

Economy Lessons Blog said...

Thanks for your opinion, Tommy. As Californian, your information about the situation comes handy.

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