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San Fernando Valley year-over-year home sales are down again from year ago levels, twelve months in a row. This is consistent with trends throughout Southern California.   June’s units sold were 1333 units.  This is down 21.1 percent over a year ago.  Sales are down from year ago levels anywhere from a low of a 4 percent decline in the Northwest Valley to a 32 percent decline in the Central Valley.  Valley home sales in June 2010, last year, were the highest we have seen in the past eighteen months. The Valley housing market is showing some signs of more life.  Sales in June were up 8 percent over May 2011 sales of 1234.   Until we see signs of economic growth and reduced unemployment, the housing market will remain sluggish.

                                                    June 2011                           May 2011                           June 2010          
SFV Home Sales                              1333                                   1234                                   1689
12 month Change                           - 21.1%

The Valley’s June 2011 median price of a single-family, detached home was $390,000.  This is UNCHANGED from the median price of $390,000 in June 2010.  Valley median home prices peaked at $660,000 in May 2007.  Since then, the lowest median price level we observed was $347,500 in March 2009.  Single-family median home prices gradually rose from the bottom in March 2009 through September 2009.  Since then, median prices have stabilized around the current $390,000 price.  Given the low level of sales, the Valley median price may not accurately reflect housing values.  We expect Valley median prices to continue fluctuating in the near $400,000 level through the remainder of this year.

                                                    June 2011                           May 2011                          June 2010    
SFV Median Price                        $390,000                              $385,000                            $390,000
12 month Change                  0.0% (no change)

Notices of Default (NODs) in June 2011, at 811, are DOWN 10.5 percent from June 2010.    NODs peaked in March 2009 at 2539 and have trended down since then.  NODs continue to remain highest in Olive View and Pacoima.  NODs have generally trended down since August 2010 and are now at levels we observed last in mid-2007.  This is a good sign for a further gradual decline in foreclosures.

                                                    June 2011                           May 2011                           June 2010          
SFV NODs                                         821                                       841                                   917     
12 month Change                          -10.5 %

June 2011 foreclosures were at 528.  This is UP 9.8 percent from the June 2010 level of 481.  Foreclosures peaked at 919 in June 2009.  Foreclosures have trended down over the past two years.  However, we have seen slight increases over the past two months.  This increase may be financial institutions moving through their mortgage portfolios to participate in a usually more robust summer housing market.  We anticipate continuing foreclosures at around the current level until unemployment show significant declines.  This will likely continue into March or April 2012.

                                                    June 2011                           May 2011                           June 2010
SFV Foreclosures                             528                                    512                                      481
12 month Change                            +9.8%
LA County Foreclosures                   2,506                                    2,191                                 2,334    

12 month change                             +7.4%