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Sales of existing homes in Ventura County fell 17.8 percent in July from the same month a year ago, the California Association of Realtors reported today.
The median sales price was $682,930, down 3.2 percent from $705,260 in July 2006.
The median is the midpoint, where half the homes sell for less and half for more.
July's median dropped $9,800, or 1.4 percent, from June.
Statewide, home sales decreased 22.7 percent in July, while the median was $586,030, up 3.2 percent from $567,860 a year ago, CAR reported.
"With credit drying up in recent weeks, we expect further weakness in sales over the next few months," CAR Vice President and Chief Economist Leslie Appleton-Young said in a statement. "It is too early to say how long the current credit crunch will continue, but we are hopeful that we will avoid a prolonged credit crisis that might cause sales to decline over a longer period of time."
CAR's Unsold Inventory Index for the state's existing, single-family detached homes in July was 10.7 months, compared with 7.3 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Ventura County homes sold in July were on the market for a median of 61.5 days, compared with 45.5 days for July 2006.
Posted by CAPEDad on August 27, 2007 at 2:49 p.m. (Suggest removal)
I don't know how important "median" values are to you, but MY neighborhood has dropped at least 15% in the last two years. And it's still falling.
I'd like the STAR to run an analysis on selective housing tracts comparing exact models - now that would be an interesting story.
Posted by 805grl on August 27, 2007 at 3:08 p.m. (Suggest removal)
Does anyone have any idea if it is a good idea to buy now ? And if so, should one purchase a "older home" or a "new one" -ie RiverPark Development?? Your thoughts and/or input would be great!! With all of the ups and downs in the market its hard to decide which way to go...
Posted by AnnaWhaat on August 27, 2007 at 3:36 p.m. (Suggest removal)
805girl,now is just as good a time to buy. If house prices dropped much more the interest rate will end up going up. I personnally would prefer an older home due to the yard size. Homes being built now are like cracker jack boxes all next to each other . Four steps and your at the sidewalk. No back yard.......a few feet if any. So it would be what you prefer to have. What city are you looking in.......?
Posted by palmerda on August 27, 2007 at 3:55 p.m. (Suggest removal)
805girl - The formula for deciding when to buy is actually quite simple. If you can afford the monthly payments (including tax, insurance, and, if required, PMI) for a 30 YEAR FIXED RATE on a home you would be comfortable in, then there's no need to wait. However, I don't know too many people who can purchase a home in Ventura County that meets those terms nowadays. Whatever you do, don't buy on an impulse or because you feel like you're 'missing out'.
As for older homes versus newer tract homes - stay far away from the latter. I bought and lived in a tract home for a few years. I'll never do it again. The homes were so close together, we had sanitary problems - namely pigeons by the thousands (I see almost no pigeons in Camarillo). Also, there's almost no place to park. I hope this helps.
Posted by guy133 on August 27, 2007 at 4:31 p.m. (Suggest removal)
The best way to determine if it's a good time to buy or not is if the total monthly mortgage cost is about the same as it would cost to rent a similar house. If mortgage is more, then you should rent until house prices come down.
Posted by surfing93035 on August 27, 2007 at 4:39 p.m. (Suggest removal)
Simple Market correction. Still a long way to go to being normal. Good appreciation would be 5% per yr. A 400K home coulda-shoulda-woulda gone up $20K per year over 10 years so a 400K home should be worth about $600K today. Not 900K-1.3 million. still way too many homes over priced, just because we live in paradise compared to the rest of the country. As a future home buyer I am waiting another 8-12 mos, cause I don't think we are near the bottom. For all you dorks who went on vacation, bought cars and did home remodeling..too bad. Ya should have bought more houses /property with your equity. Now your house is worth less than the 2nd mortgage you now have. Liquidity Rules!
Posted by bartonmanor2004 on August 27, 2007 at 7:22 p.m. (Suggest removal)
805grl. Check Riverpark's property tax rate. Last time I checked it was 1.99 percent. For example a $400,000 house would have a yearly property tax bill of $7960.00, substantially higher than used houses or other new developments. This pays for the amenities, including parks, schools, fire station. Ask the salesperson to verify. Not generally talked about until real interest is expressed. Seemingly great prices but higher taxes. Good luck!
Posted by Fred on August 27, 2007 at 7:36 p.m. (Suggest removal)
805grl - dont buy a thing, all hell is about to break loose....
Posted by gnu154 on August 27, 2007 at 8:03 p.m. (Suggest removal)
I agree with the 'perfect storm' comments. This area is set for a fall and balancing on one leg... With Amgen & Countrywide taking hits, albeit small, any further hits in employment will weaken the local economy across the board. When that happens, the one-legged local economy will fall, taking casualties on the way down. On the other hand, the current worries may just be a bump in the road with a smooth recovery. Either way, though, the current risk is high... And as a homeowner, even with equity, the prospects are still frightening.
Posted by Nosmo_King on August 27, 2007 at 8:05 p.m. (Suggest removal)
Wow! one question led to a LOT of great info. thanks 805grl!
Posted by allblacks on August 27, 2007 at 8:46 p.m. (Suggest removal)
Seems like the only ones who need to worry are those buying/selling. If you're already in a 30 yr fixed rate then life will go on as always. Credit is only doing what it should have done all along-only loan to those who can afford it.
No government bailouts, please.
Posted by SmashyCrashy on August 27, 2007 at 9:33 p.m. (Suggest removal)
Traditionally in real estate downturns new home developments fair worse than existing home markets. This is due to the low equity position and higher tax base of the new homeowners.
What is one of the differences in this downturn is the sheer volume of the money taken out of existing homes through refinance and HELOC. This suggests that many existing home neighborhoods are also in a less favorable equity position. Throw in the rapid turnover of homeowners in existing neighborhoods relative to any pre-boom years and you can see its not much of a greater choice.
I haven't even begun to mention the huge concentration of interest only and payment option arms in California. Or the reduced low/no documentation on income.
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