Los Angeles Foreclosure Homes to Enter Market as Prices Rise
More Los Angeles foreclosure homes are expected to enter the market as home prices rise, according to real estate analysts in Southern California. They contend that many lenders are holding out for higher prices and that the others are trying to comply first with the federal foreclosure prevention program before pursuing their foreclosures.
In Los Angeles County, the median sales price reached $321,000 in July, a substantial increase from the $300,000 median of the past several months. In Orange County, the median home sales price climbed up to $420,000, a significant increase from the $370,000 median in January.
Based on real estate records, the number of houses hit with foreclosure filings in California is still high despite a slowdown in foreclosure sales. In July, almost 125,000 homes across the state were listed for foreclosed home auctions, nearly twice the number of foreclosed houses in July last year.
Housing analysts contend that lenders have been delaying repossessions because of various reasons. Aside from federal foreclosure prevention compliance and pricing factors, lenders may be deferring foreclosures to reduce the value of non-performing assets on their books and result to more attractive quarterly results.
In Burbank, according to the analysts, only around 130 single-family houses priced below $1 million are on listings, but over 350 units priced similarly have been hit with foreclosure filings previously. Even if the median sales price in Burbank dropped by 4 percent to $519,000 this July, the number of single-family houses sold in July remained the same as last year’s July sales.
Across Southern California, the lower-priced sector of the home market is getting increased demand. Bidding wars have been observed in price ranges below $500,000. Home sales across the region increased by 19 percent in July, compared to sales in July last year.
In the Southland area, the median house price remained at $268,000, which is far below the $505,000 peak price in 2007.
The median price across Southern California in July was $268,000, still 23 percent lower than the median in July 2008. But compared to the past three months, the median price has been rising, increasing by 6 percent to $265,000 in June and by 1 percent in July.
Meanwhile, sales of houses and condo units priced below $500,000 comprised 80 percent of sales in July, a decrease of 85 percent from March.
Related Posts:
- Buying Foreclosure Homes for Sale in the West
- Home Prices Plummet; Sales Up for Southern California Homes
- Foreclosure for Sale Leads July House Sales in Florida
- Cheap Foreclosed House Sales Up in Florida
- Cheap Foreclosed Properties for Sale Drove Sales in Florida
