Southern California home sales hit their highest monthly total since March 2007 as bargain shoppers snatched up foreclosed properties, DataQuick reported today.
A total of 20,329 new and resale homes and condos sold in six Southern California counties last month, a 16.7 percent increase from June and a 13.8 percent rise from a year earlier.
It was the highest monthly total since 21,856 homes were sold in March 2007, but still 23 percent below the average July sales total stretching back to 1988.
“What we’re looking at is a fire sale of properties in newer affordable neighborhoods that were bought or refinanced near the price peak with lousy mortgages,” said John Walsh, MDA DataQuick president, in a release.
“What we’re still not seeing is this level of distress spreading to more expensive or established neighborhoods.”
Foreclosure resales accounted for 43.6 percent of all resales in July, up from 41.8 percent in June and 7.9 percent a year earlier.
The median price paid for a home in SoCal slipped two percent to $348,000 in July, down from $355,000 in June and $505,000 a year earlier.
Jumbo loan financing accounted for just 15.8 percent of monthly sales, down from more than 40 percent prior to the credit crunch beginning last August.
The typical monthly mortgage payment buyers committed to last month was $1,632, down from $1,671 in June and $2,447 a year ago.