Declining Prices Spark Huge Gains in Sales
Southern California saw its median housing price fall 40 percent in January to $250,000, spurring a 52.5 percent increase in sales of new and previously owned houses and condominiums, according to MDA DataQuick.
The six-county area includes Los Angeles County, where the median sales price dropped to $300,000, its lowest point since April 2003; however, sales in Los Angeles County soared 33 percent. San Bernardino and Riverside Counties saw more significant jumps in sales—128 percent and 71 percent, respectively.
While discounted prices on foreclosed homes continue to be the driving force behind price declines (foreclosures accounted for 58 percent of all transactions of previously owned homes and condos), resales hit record levels in some areas. Palmdale set a record of 306 resales in January 2005; resales last month reached 351.
Jim Link, chief executive of the Southland Regional Association of Realtors, said bargain hunters are bidding against one another on discounted properties, and some homes are selling at above the list price.
– Sarah Binder
