Status of California Home Sales in July 2011

DataQuick released a report last week about California home sales. July 2011 home sales dipped with distressed properties representing more than half of all California home sales.  The median sales price for July 2011 was $252,000, a .04% decrease from June 2011 and a 6% decrease from July 2010.
The number of foreclosure sales was down to 34,695 foreclosed homes and condos sold during July 2011, representing an 11% decrease from June 2011, and down 1.4% from July 2010. Thirty-four percent of the distressed sales were from homes that had been foreclosed upon during the last year. Short sale transactions accounted for 17.3% of all sales last month, which was down 17.4% from June 2011 and down 18.6% from July 2010. The good news is that distressed sales are declining, but there are still a high number of distressed homes on the market.
The median home price in Southern California fell 4% in July 2011 from July 2010 to $283,000. There were a total of 18,090 homes and condos sold in the Southern California areas of Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties during July 2011, which was a decrease of 4.5% from a year ago.
The median sales price in the Bay Area was $374,000 for July 2011, representing a decrease of 7% from July 2010. There were a total of 6,887 homes and condos sold in the San Francisco area encompassing 9 counties, which was up 1.7% from a year ago.
The median price of a home in Silicon Valley rose to $987,552 compared to $960,656 during July 2010, Los Altos median home’s sale price rose to $1,643,982 compared to $1,628,597 during July 2010 and Los Altos Hills median home’s sale price rose to $3,107,272 compared to $3,071,513.
Realtors have observed increased numbers of closings during June 2011 in both Santa Clara County and San Mateo County, but closed sales are still below the historical average. Inventory is growing at a slower rate than expected. San Mateo and Santa Clara real estate buyers, including first time home buyers and investors, are seeking single family houses more so than condos and townhouses.
Lifestyle buyers who are looking for the advantages of owning maintenance free real estate are getting more for their money by purchasing a condo or townhouse, even though they are subject to paying association dues.
Right now is a great time to purchase California real estate with affordable prices, abundant inventory and low interest rates.  Since the FED has vowed to keep mortgage rates at all time lows for the next couple of years, buyers should take advantage of these great rates, especially right now before Congress decides to lower the high cost loan limits, which would affect California buyers as well as buyers in other high cost areas.