SAN FERNANDO VALLEY HOUSING REPORT FOR JUNE 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 16 percent from a year ago but they did rise 10.3% from their May 2008 level—a normal seasonal pattern as we move into the prime home-buying season. In spite of the increase in sales from May, the 1,155 units sold in June is the lowest Valley June sales number since records were started in 1988 (the next lowest June was in 1993 when 1,444 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.
June 2008 May 2008 June 2007
SFV Home Sales 1,155 1,047 1,373
12 month change -15.9%
The Valley’s median price of a single-family, detached home continued its downward drift in June, falling to $472,500. Slow sales and rising foreclosures continue to put downward pressure on housing prices—June’s median price fell 27.8% from June 2007 when the Valley’s median price came in at $654,750, as
SFV Median Price $472,500 $485,000 $654,750
12 month change -27.8%
After dropping in May, the previously climbing Notices of Default (NODs) edged down again in June, remaining 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 1,472 1,488 802
12 month change +83.5%
June foreclosures, at 803, combined with those in April (608) and May (673), produced record breaking quarterly foreclosures in the Valley. The previous quarterly high of 1,818 occurred in the second quarter of 1996. Second quarter 2008 foreclosures of 2,084 exceeded the previous record by 266, or 14.6%. This quarter’s record number of foreclosures could be surpassed next quarter given the current trend in foreclosures and the still high numbers of Notices of Default.
SFV Foreclosures 803 673 233
12 month change +241.6%
LA County Foreclosures 3,676 3,123 1,025
12 month change +258.6%