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February 26, 2008
SoCal Home Prices Drop
2/14/08 L.A. Times: Low interest rates, falling prices and promises of government relief were not enough to slow the pace of Southern California's housing downturn, which hit a new bottom last month.
What's more, nearly 1 out of 4 homes sold -- 23% -- had been foreclosed, which is putting downward pressure on home values.
The median home price in January was $415,000, 18% below last year's peak and the lowest since January 2005. The median is the point at which half the homes sold for more and half for less.
January is typically one of the slowest months for home sales, and real estate agents are hopeful that the perception of bargain prices will help lure buyers into the market as spring approaches.
Pamela Taylor, a 23-year-old accountant who lives with her parents, is just the kind of buyer whom home sellers are looking to attract. She has good credit and savings, and she thinks it's a good time to buy.
Taylor said she made offers on three houses in West Hills in January and was outbid on two of them.
Her offer of $485,000 for a house listed at $515,000 was accepted, but she backed out of the deal when an inspection found a damaged foundation. Still, she plans to keep looking.
"The market's going down, and as long as you can afford a down payment, you can get a monthly payment very similar to what you might pay in rent," she said. For more on this story click here.
Posted by Post Scripts at February 26, 2008 08:45 AM