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Median home price at $487,790 in the county
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Ventura County's sales of existing, single-family detached homes last month fell 12.7 percent from a year ago and 7.2 percent from April, California Association of Realtors reported today.
The median price, the point where half the homes sold for more and half for less, tumbled to $487,790 in May, down 30.3 percent from $699,480 for the same month a year ago and 1.8 percent from $496,530 in April.
Statewide, home sales last month rose above their year ago levels, marking an increase for the second month in a row after a previous 30-month run of year-to-year declines, according to CAR.
For the first time since early 2007, monthly sales exceeded 400,000 statewide, CAR reported.
California sales surged 18.1 percent last month, going from 358,640 in last year to 423,700 in May, according to information collected by CAR from more than 90 Realtor associations in California.
Meanwhile, the median price posted a record year-over-year drop. In California, the median price for a home sold last month was $384,840, down 35.3 percent from $595,000 a year ago.
The significant drop is reflecting the effect of large numbers of short sales and foreclosures in the market, Leslie Appleton-Young, CAR's vice president and chief economist, said in a release.
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Posted by solvingadream on June 25, 2008 at 4:59 p.m. (Suggest removal)
It has dropped by so much and yet homes are still so expensive. Seems like it has to keep dropping.
Posted by Will on June 25, 2008 at 6:11 p.m. (Suggest removal)
The ratio of median house price to median household income in California is still 10:1
Historically it is about 5:1
There is still a long way to go. With high prices and a lower percentage of renters due to the "ownership society" who will support the market over time at these prices by buying first time homes? Who can save up 50-100k for a down payment. We probably need another 40% drop to eventually have a healthy economy. Even with another 40% drop we would still be at previous historical highs with regard to the ratio of median house price to median household income in California.
Add inflation, a budget crisis, and insolvent banks and it could be a Depression in California.
Posted by celtcwrtr on June 25, 2008 at 6:59 p.m. (Suggest removal)
it's not over. not yet.
Posted by dragstripgirl on June 25, 2008 at 7:43 p.m. (Suggest removal)
We are just overstocked. The prices will continue to drop until the median price is under 417k and the average person will be able to get loans to purchase these homes.
Posted by ecarson1958 on June 25, 2008 at 7:48 p.m. (Suggest removal)
Will; "it could be a Depression in California," I don't know about anybody else, but to me it is a Depression, Now. What do you call it when the average person that lives here, gets up in the morning 5 times a week earlier than they would really like, drag their worn out bodies out to their vehicles and start the week first at the gas station? There, they will fill up the tank 20 cents costlier a gallon than last Monday, and $2.20 costlier a gallon than a year ago. Hopefully after dropping $80 into half the tank, they'll hope that the big comfortable SUV bought 5 years ago with the fat equity line of credit the loan agent signed them up for, will make it until the next Monday. But by then it could cost $90 to fill half the tank. Arriving at work 90 minutes later for that "quick 20 minute drive" from Camarillo that their Real Estate Agent said they would expect, they were surprised to see that mostly everybody got a pink slip notice to be executed on Friday. To think that this family uprooted from a nice little town in Idaho to work for this great big everlasting Bio-Tech firm, spending $3,200 a month for their house payments, when back home it was a huge $850 a month. I don't know. Their house is now worth about $165,000 less than when they thought they were rich. And, heading lower than what they owe. The SUV might as well be outfitted with body armour and shipped over to Iraq, because that's where it will be needed to try to procure more oil for their kids. The job is pretty much history, and then they just found out their 401K's had been diversified with Bear Stearns and a bunch of Mortgage Backed AAA Securities you can't loose with. Now I ask you again Will? Do you still think were heading for a Depression? I think this family is already depressed enough.
Posted by SmashyCrashy on June 25, 2008 at 8:17 p.m. (Suggest removal)
It is amazing the low equity positions of many homeowners, even those who purchased at the low point of the last bust. The reason is that far too many people took out HELOC's, second loans or a cash out refis. Now that prices are reverting these people are realizing that maybe treating the house as an ATM wasn't the smartest decision and they don't have a plan B. It turns out that overimproved kitchen, new RV and/or swimming pool isn't just going to pay for itself and many people are on the hook for an expense they expected to pay for itself.
I think the number of short sales on the market is just a drop in the bucket compared to what is coming, to say nothing of the ones that have already been foreclosed.
The next shoe to drop (IMHO) for the local area will be the jobs issue. Ventura is particularly vulnerable in this area and in addition housing demand is being hurt by high gas prices. Low cost housing in exurbs isn't low cost if you're fuel costs are high. People buying now are doing so in the face of some significant long term issues affecting housing and the county, they better plan to stay for quite awhile.
Posted by mikeb6804 on June 25, 2008 at 8:50 p.m. (Suggest removal)
When it comes to home prices, we are reentering the world of reality. However, anyone who comes here and commits to a $3200 house payment (see ecarson above) deserves whatever they get. That is not a smart move.
Posted by Will on June 26, 2008 at 9:48 a.m. (Suggest removal)
ecarson - sorry to hear your situation. You are right it is a depression for quite a few of us already.
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