Valley home sales up; prices dip
Home sales rose 20 percent across the state in June as the Coachella Valley continued to post sales volume gains.
“The trend we are seeing is that prices are stabilizing and sales are spiking, so buyers are getting the message that this is not a time to linger if they are in the hunt to buy a home,'' said Greg Berkemer, executive director of the California Desert Association of Realtors.
Valley home sales rose 30 percent, with 2,898 transactions noted from April to June.
That's up from 2,222 sales during the same period last year, according to Multiple Listing Service data released by the Desert Association of Realtors.
The average MLS home sale price in the valley from April to June was $257,427, up from $250,935 from January through March.
“There was a slight tick up of the average sales price in the second quarter, and people are starting to notice that,” Berkemer said.
But Patrick Veling, president and founder of Brea-based Real Data Strategies, said the enthusiasm about rising home sales must be tempered with statistics that show home sales are largely occurring at entry-level price ranges.
“There's been about a 20 percent increase in sales activity, but that's occurring only when compared to record lows,'' he said.
Average home sale prices are down dramatically from a year ago: The fall in prices nearly equates to two homes for the price of one. Last year, the average MLS sale price on a single-family home was $486,694 in the first three months. It averaged $454,706 from April to June 2008.
The median price of all homes sold in May in the Coachella Valley — that would include existing single-family homes, condos and new construction — was $180,000. That's down 41 percent from a year ago.
The price points have been a catalyst for sales.
James Liptak, president of the California Association of Realtors, said June marked the 10th consecutive month of positive sales gains for resale homes across the state.
“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments increased affordability, and low-interest rates are creating a prime time to purchase a home,'' he said.
It was the fourth month of rising median home prices across California, Liptak said.
The state median of $274,740 rose 4.2 percent from May to June but was down nearly $100,000 from one year ago. The state median in June 2008 was $374,100.
Closed escrow sales across California totaled 514,110 in June at a seasonally adjusted rate. The sales pace recorded in June 2008 was 427,910 closed escrow sales.
Tuesday, July 28, 2009
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