The median home price in Southern California fell 34% in August from last year, a research firm said Wednesday.This decline seems to be exaggerated due to a shift in the mix of houses being sold. One should not assume that individual homes have declined in price by 34%.
The cost of new and resale homes and condos dropped to $330,000 last month in a six-county region.
It was down from $500,000 in August 2007 and down 5.2% from $348,000 in July, MDA DataQuick said. ...
MDA DataQuick president John Walsh said much of the sales activity has been logged in lower-priced inland areas where the market has been driven by foreclosures. ...
Foreclosures accounted for almost 46% of all resold properties last month, up from 10% in August 2007 and almost 44% in July.
Saturday, September 20, 2008
Southern California Home Prices Plummet
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"This decline seems to be exaggerated due to a shift in the mix of houses being sold."
ReplyDeleteYes and no. The lack of activity in the higher end suggests that the asking prices are TOO HIGH. Perhaps if the high end market priced their homes realistically - to the point where the volume returned to normal - we just might see prices in the higb end drop 34% too.