Southern California Homes Sales on Decline and Housing Prices Stagnant

Southern California Homes Sales on Decline and Housing Prices Stagnant

Best Syndication News

(Best Syndication News) - Home sales volume in Southern California are on a decline for the month of October, 2010, according to MDA DataQuick survey. The survey also found that housing prices remained about the same. There was a total of 16,744 homes sold in Southern California which was 24.3 percent reduction from October 2009 numbers.

The Southern California homes included in this survey include the counties of Los Angeles, Riverside, San Diego, Ventura, San Bernardino, and Orange. The median pricing for the homes sold was $284,500 for the October 2010 which is up by a mere 1.1 percent from $280,000 from the previous year at the same time.

The National Association of Realtors (NAR) says that the biggest obstacles that the housing market faces now are job creation and access to financing a mortgage loan. They said that these factors are even more critical than the current trend of mortgage interest rates increasing.

NAR Chief Economist Lawrence Yun said that banks have “overly tight underwriting standards” and are slowing down the housing recovery process. Yun said that banks have been making it extremely difficult for people with good credit ratings to financing a mortgage loan if they are small business owners or are looking to purchase investment real estate. NAR said that in order to qualify for a mortgage loan today you need to be employed with a really good paying job.

Another factor that could be contributing to the slower housing sales from the previous year is the first time homebuyer tax credit was going on at that time, while this year there wasn't any extra bonuses for buying a home.

By: N Wilson



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