June 2010 home sales over all of Southern California are up compared to 2009 except for the Inland Empire region where homes sales dropped. However, Inland Empire home prices actually increased by almost 14%!
In Riverside County, 4,645 homes sold in June 2010, down 1% from 2009. In San Bernardino, 3,179 homes sold in June 2010, donw 8% from 2009. Data is from MDA Dataquick’s monthly report. This report also shows that Riverside & San Bernardino counties had the highest increase in median home sale price.
The large increase in median home price is most likely a result of a shortgage of bargian foreclosures, with the result that more expensive homes were sold as a percentage of total sales…..which would increase that median price. The federal first time buyer tax credit spurred many entry level buyers to purchase entry level priced homes.
I think the number of homes sales is more indicative of where the market is going and may fortell that prices could drop in the next 2-3 months. Homes for sale are seeing many fewer offers. Fewer buyers (less competition) may cause sellers to drop the price in order to find a buyer. …or at least not result in overbidding of a home.
Another likely cause of fewer entry level priced homes may be the record number of foreclosure sales that have been cancelled in California, as reported by ForeclosureRader. They report 10,506 foreclosures were cancelled in California before reaching auction sale, and increase of 27% from May, 2010.
Should you purchase a home right now? There are many factors that influence that decison, and depnds on each perosns situation. This is where working with a skilled, experienced, and honest Realtor or Loan Officer will help you come to a good decision. If you would like to discuss a possible home purchase with me, just call. To find a trusted Realtor, I would be willing to refer an agent who I think gives the best unbiased advice.