Home sales in Southern California rose three percent from May to June, but were still down 13.6 percent from June 2007, according to real estate information service DataQuick.
Just 17,424 new and resale homes and condos were sold in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties last month, the slowest June ever recorded since the company began crunching numbers in 1988.
A typical June registers about 28,488 total sales, and the peak was a whopping 40,156 homes in 2005, which may explain the mess were in now.
The worst part is that foreclosure sales accounted for 41.1 percent of all resales during the month, up from 39.2 percent a month earlier and 7.3 percent a year ago.
These types of transactions accounted for a whopping 62.3 percent of resales in Riverside County and 18.9 percent in Orange County.
Interestingly, the typical monthly mortgage payment Southland homebuyers were committed to paying last month was $1,671, down from $1,713 in May and $2,430 a year ago.
Inflation-adjusted, it’s the lowest average monthly mortgage payment in five years, signaling a return to more responsible lending perhaps?
“The mortgage market turbulence is putting quite a bit of activity on hold,” said John Walsh, DataQuick president. “Policy decisions about underwriting don’t really mean much if there’s little or no money to lend.”
“Even some very well-qualified households aren’t getting mortgages these days, although this could all change fast if liquidity comes back.”
Jumbo loans accounted for 16.3 percent of Southland sales last month, up from 15.7 percent in May, but well below the 40-percent levels seen a year ago.