According to MDA DataQuick, Southern California home sales have escalated to 51 percent last December as costs of single-family houses and condominiums have decreased from the previous year because of the rise in foreclosures.
Vacant houses and condominiums bought last month in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties amounted to 19,926. The San Diego-based research company also adds that sales have increased compared to only 13,249 from last year. The region’s mean home price became $278,000 as it dropped 35 percent.
After President-Elect Barack Obama designed plans to revitalize the housing market through the utilization of the remaining half of the $700 billion Troubled-Asset Relief Program, foreclosures now enticed buyers, which originally were sold in unreasonable discounts. The first allocation of money for bailout provided assistance to lenders such as Bank of America Corp., and financial companies like Goldman Sachs Group Inc. since their assets concerning mortgages plummeted in value.
California foreclosed homes amounted to 56 percent of Southern California’s sales last December, which was twice the amount of the previous year. These deals have comprised roughly 70 percent of sales in Riverside County, where the mean price tumbled 41 percent to $209,000. Sales leaped 77 percent to 4,435.
As a smaller percentage of properties near the cost converted hands and more inland areas where mortgages defaults have risen were sold like in Riverside and San Bernardino, the mean price for the whole of Southern California took a nose-dive.
In addition, according to John Karevoll, an MDA DataQuick analyst, there is plenty of activity in distressed markets, while very little activity in less distressed markets. In the six Southern California counties, each one had a boost in foreclosed home sales. Taking the lead is San Bernardino with an 89 percent increase, which also had the largest cut in price with 43 percent to a mean of $180,000.
On the other hand, the Los Angeles County displayed the least in sales growth, with only 32 percent of deals increasing from the previous year. The mean price decreased 32 percent to $320,000. Prices dropped the least in San Diego County, as the mean waned 30 percent to $300,000.
MDA DataQuick also adds that Southern California buyers of foreclosed homes last December were primarily loaned by the Bank of America and Wells Fargo & Co.
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