SCV HOME SALES RISE IN JUNE

The Southland Association of Realtors reported that June transactions were up 11.2% compared to June 2007, also an increase of 4.1% from May 2008.

Median detached single family home prices dropped 25.6% from a year earlier and stands at $450,000, down from the $643,000 record high recorded in April 2006. The decline is exactly 30% from the peak over the 27 month period. The median price for condos was down 23% from a year ago to $285,000, and down from the January 2006 record of $397,000, down 28% from the peak. This indicates that the slide has been the most dramatic in the past 12 months.

Listings are down 16.4% from June 2007 and the current inventory represents only a 6.4 month supply at the current pace and slightly over the 5 to 6 month supply the Association deems to be "balanced" (though I don't know many sellers that would like to wait 5 to 6 months to sell their home).

The low inventory is optimism that once liquidity returns to the market, prices will stop declining.