SAN FERNANDO VALLEY HOUSING REPORT FOR MAY 2008
San Fernando Valley Economic Research Center
CALIFORNIA STATE UNIVERSITY, NORTHRIDGE
Dr. Daniel Blake, Director 818-677-7021
San Fernando Valley home sales were down 27 percent from a year ago but they did rise 9.1% from their April 2008 level—a normal seasonal pattern as we move into the prime home-buying season. In spite of the increase in sales from April, the 1,047 units sold in May is the lowest Valley May sales number since records were started in 1988 (the next lowest May was in 1993 when 1,214 units sold). On the positive side, Valley home sales have increased every month this year, which means that some mortgage lenders are making progress on getting their portfolios in order and their lending standards stabilized so they can begin to fund new mortgages. Also prospects of bargain pricing may be luring some buyers off the sidelines.
May 2008 Apr 2008 May 2007
SFV Home Sales 1,047 960 1,434
12 month change -27.0%
The Valley’s median price of a single-family, detached home continued its downward drift in May, falling to $485,000. May’s median price fell 26.5% from May 2007 when the Valley’s median price peaked at $660,000, as slow sales and rising foreclosures continued to put downward pressure on housing prices.
SFV Median Price $485,000 $505,000 $660,000
12 month change -26.5%
The previously climbing Notices of Default (NODs) took a breather in May, dropping back below both March and April levels but still more than 100 units per month above the January (1,360) and February (1,369) rates. Notices of Default typically take about 100 days to turn into foreclosures if the mortgage delinquency is not resolved or the mortgage renegotiated (which many are).
SFV NODs 1,488 1,560 741
12 month change +100.8%
Monthly Valley foreclosures remain on track to push on all-time record levels (1818 in second quarter 1996 and 1854 in third quarter 1996). Records are likely to fall if foreclosures increase next month, and still high numbers of Notices of Default suggest that they will.
SFV Foreclosures 673 608 202
12 month change +241.6%
LA County Foreclosures 3,123 2,755 757
12 month change +246.5%