MORE YEAR-OVER-YEAR GAINS FOR SOUTHLAND HOME SALES AND PRICES

Southern California has continued its gradual recovery in housing, stymied only by sluggish jobs and lack of inventory.  This newsletter's last edition of 2012 made mention of the less than 3 months inventory in most cities.  A neutral market is considered 6 months of inventory, that is a market that favors neither seller nor buyer.  So it could be said that as we start out 2013 we have a seller's market.   That being said, other aspects of the economy, such as sluggish job growth, coupled with amazingly low interest rates, still favor the strong buyer.  Perhaps it is a more even market after all, and that is not such a bad thing.  A total of 19,285 new and resale houses and condos sold in the Southland counties from Ventura down to San Diego.  That is the highest monthly total since November 2006.  That number is up 14% from November of 2011.  Activity rose the sharpest in the mid to upper range of houses, a range typical of "move up" buyers, and would account for the pent up demand of that market segment.  In fact, sales in that range, $300,000 to $800,000 jumped 34% year over year.  Short sales, where properties sell for less than what is owed against them, still accounted for 26% of the market share in November.  (The last complete monthly stats available.)  When looking at the increase in sales volume year over year, of the Southland counties,  Orange County leads the way at 25% followed by San Diego with 23%.  San Bernardino actually declined by 3% performing the worst of all counties.  More properties should hit the market as the new year gets underway, typical for the first quarter as many sellers sit out the holidays.  This should bode well for both seller and buyer, by allowing more choices for the buyer, a little more competition for the seller, to keep pricing increases in check.  Expect to see a healthier housing market this year, with growth that can be sustained by economic reality rather than the financing fancies of years gone by.