SAN FERNANDO VALLEY HOUSING REPORT FOR JULY 2009
San Fernando Valley Economic Research Center
CALIFORNIA STATE UNIVERSITY, NORTHRIDGE
Dr. William W. Roberts, Director 818-677-7021
San Fernando Valley year-over-year home sales continue an eleven month sequence of increases over the prior year. Sales, at 1541, in July 2009 are up 16.2 percent over July 2008. New and existing home sales are down slightly (1.5 percent) from the high of 1564 reached in June 2009. The last time we saw sales at the level reach in June and July 2009 was in May 2007 at 1607.
July 2009 June 2009 July 2008
SFV Home Sales 1541 1564 1326
12 month Change 16.2%
The Valley’s median price of a single-family, detached home has stabilized. There is little evidence of any significant price movement in any of the seven broad Valley areas that we track. July 2009’s median price of $379,000 is virtually the same as the June 2009 price of $383,000. Median prices remain down over the prior year. July 2009’s median price of $383,000 is down 15.8 percent from last July’s median price of $450,000 and is down 42.6 percent from the high of $660,000 reached in May 2007.
July 2009 June 2009 July 2008
SFV Median Price $379,000 $383,000 $450,000
12 month Change -15.8%
Notices of Default (NODs) in July 2009, at 1947, are UP 28.7 percent from July 2008’s 1513. NODs are highest in Olive View, Pacoima and Reseda. The continued high level of NODs implies that the housing market problems are not over. The high level of NODs may be a leading indicator of more foreclosures as job loss and pay reductions place more homeowners in difficulty of maintaining current mortgage payments.
July 2009 June 2009 July 2008
SFV NODs 1947 1883 1513
12 month Change 28.7%
July foreclosures, at 615, are DOWN 27.5% from last June’s 803. Continuing high unemployment coupled with state and local government financial problems imply a continuing foreclosure problem. With the increase in housing sales, the housing market appears robust enough to absorb the current foreclosure level without a significant impact on housing prices. The largest foreclosure areas were Olive Hills and Pacoima. These two areas, out or our dataset’s 55 zip code areas, accounted for 18.4 percent of the July foreclosures.
July 2009 June 2009 July 2008
SFV Foreclosures 615 919 848
12 month Change -27.5%
LA County Foreclosures 2,966 3,379 3,898
12 month change -23.9%