California home prices down 30% from '07 levels

California's housing slump continued to accelerate across the state in May, as the median price of homes sold fell a stunning 30% from year-earlier levels, with median prices falling by $2,700 per week, DataQuick Information Services reports today.

The median price paid for a California home in May was $339,000, a decline of $145,000 from the median price of $484,000 in May 2007. DataQuick estimates that roughly half of the decline is due to depreciation in home values, and the other half due to changes in the "mix" of homes selling, with cheaper, previously foreclosed houses increasingly dominating sales numbers.

DataQuick had earlier reported that Southern California home prices fell by 27% in the same period, but the statewide numbers are even weaker, as they include the hard-hit Central Valley of the state, where foreclosures are widespread.

Statewide sales of new and existing homes in May were 10.7% below year-ago levels, and 38.3% of the homes that sold in May were "foreclosure resales," DataQuick reported. A year ago that percentage stood at only 5.4%.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[dontmatta]

sorry if this is a stupid question, but isn't the median selling price of homes a little more helpful?

[peteviles]

donmatta writes, "sorry if this is a stupid question, but isn't the median selling price of homes a little more helpful?"

Thanks, dm. That's what this is: median selling price. Median sales price is down 30% from year-earlier. Sorry wasn't clear to you at first, I hope it is now.

[Arti]

This is not nearly enough, many neighborhoods have only begun to be affected and are looking at years and years of declines. This thing won't be over until all of the bubble gains from 2001-2006 are erased, just as happened in previous housing bubbles.

[dontmatta]

Ah thanks peter, my mistake. I was just used to the weekly housingtracker numbers you put up, and falsely assumed this was similar to that.

[MJP]

One man's "stunning" "California's housing slump" is another man's "California's slow return to reasonable pricing trends".

[Laker]

"...median price of homes sold fell a stunning 30% from year-earlier levels, with median prices falling by $2,700 per week...."

Question: How many people in LA are making $2,700 per week?
Answer: All responsible, qualified, with 20% down, future home buyers that are waiting....

My weekly paycheck is now $2700 more. I Love it.
I'm spending $25 more on gas, and $25 more on food weekly, so my net increase to my paycheck is $2,650.
Nice!

[Housing Bull Chorus]

Well fine...doom and gloom, doom and gloom.

You Bloggers are going to ruin the housing market, the economy, and it looks like you all want our fine honest upstanding politicians to go down in flames.

Shame on you filthy renters.

I'll bet you people don't even floss after brushing.

[laughing]

Don't waste your breath, Housing Bull Chorus!

Those filthy renters have too much wax in their ears and rocks in their heads to understand a word of your wisdom!

It's a disgrace!! Renters and blogs need to be stopped before they destroy the best country on this planet!!

[Rob]

Bull Wrote: "I'll bet you people don't even floss after brushing"

Hilarious....

Its good to be king...

[puckhead]

Laker,

Try to take your $2,650 "paycheck" to Costco and see if you can buy a bag of rice with it. I'll take my regular paycheck and deduct my so called $2,700 loss and I'll still be able to take the wife and kids to Hawaii for the summer.

[H. E]

I think it's good thing that prices continue to adjust. That means more people will be able to buy homes...

[D]

A little off topic but a great story:

From The Daily News:

Velvet Revolver guitarist Slash and his wife, Perla, can move forward with a $1 million civil suit they filed against a real estate agent and his firm, alleging they were duped into buying a house that did not have the amenities they expected, a judge ruled today.

The suit, filed last November in Los Angeles County Superior Court and amended in mid-March, names Gregory Holcomb and Sotheby's International Realty as defendants.

Judge Mel Red Recana denied defense motions to dismiss the portions of the suit alleging fraud, constructive fraud, negative fraud and breach of fiduciary duty, and to strike the claim for punitive damages.

He scheduled a Feb. 17 trial date and urged both sides to consider resolving the case with the help of a mediator.

The couple allege they thought they had found their dream house in December 2005 and believed it was on a private, gated street in the Hollywood Hills. Although the street is gated, it is public and has very little parking, according to their court papers.

The rocker and his wife also say the home was much smaller than 7,800 square feet, as listed, and that there were other issues with the title to the property.

"It's hard to imagine conduct that is worse than a real estate agent intentionally misleading and/or withholding critical information from a purchaser so that a sale would close and a commission would be paid," their court papers state.

But the defense court papers
maintain that Holcomb and Sotheby's had no way of knowing that the Multiple Listing Service description of the home was incorrect and that it was not actually on a private street.
Slash, whose real name is Saul Hudson, became famous as the lead guitarist for Guns N' Roses.

Favorite quote:

"It's hard to imagine conduct that is worse than a real estate agent intentionally misleading and/or withholding critical information from a purchaser so that a sale would close and a commission would be paid,"

[Laker]

puckhead, when I'm going to costco, I'm using the 1st part of my paycheck. The $2650 part is the one that is "going" towards the home purchase...Since you already bought a house, you are on the other side "paying" that $2650 while I'm collecting. When we go to Costco, we both on the same side paying $100 minimum costco trip "fee" at the door, and extra if we actually buy something...
On another note, I don't buy rice, and last time i checked, it is up $4, but who cares...Bernanke is saying we don't have any inflation and that if it was, it is moderating...Did you get a stimulus check? it should help you cover the increase in rice price...

[RO]

Peter, this is great, but I am just not seeing any of these price declines applicable in the nicer areas of LA. The numbers are meaningless without better categorization.

[Ace]

Most of the foreclosures in my neighborhood (Valley Village, NoHo) that have sold in the last 60 days have all sold for about 30 to 40 percent less then the previous owner paid 1 to 2 years ago.

I house that I loved on Hartsook sold for $1,050,000 in 08/06 and just sold for $650k... a 38 percent loss.

Another house on Alcove sold for $1,100,000 in 10/06 and just sold for $590k... a 46 percent loss.

[GDC]

Ace,

Thanks for those examples. I am looking for a house in the Valley and this is the type of info I've been looking for on this blog. In the past, Laker has also given some very good examples of recent sales v. original listing price. My question to the group is: how should one go about getting these types of "discounts" in the Valley?

[puckhead]

Laker,

Ha ha about the Costco $100 entrance fee. I walk in there wanting to buy some TP and the next thing I know I spent $200.

You're wrong about me "paying" my $2.7K for owning my home. I bought so long ago my mortgage is cheaper than rent and I never took any money out of my shack. How can I loose something I never had?

Don't get me started on this "stimulus" scam. A schlub working at Mickey D's gets $500 and both me and wifey work our tails off and we get.............................a big fat $0.

[Garrett]

GDC asks: "My question to the group is: how should one go about getting these types of "discounts" in the Valley?"

Just figure out what YOU want to pay and make some hardcore lowball offers. You're in the driver's seat now.

Here another anecdote:

2700 SF, 5BR, 3 BA, REO in Newhall. Sold for $805K in 2006 and they are asking $440K now. I bet the bank would take $380K (another sold in the development for that recently). That would be a 53% drop in 24 months.

[MyLessThanPrimeBeef]

GDC, you get that kind of discount by navel gazing.

You wait, passing time meditating, and you will get 46% AND more off deals for years to come.

Tomorrow, I love you.
You are just a day away!

Mutlitply that a thousand or more times. And you will be very happy indeed.

[shockg]

Question: How many people in LA are making $2,700 per week?
Answer: All responsible, qualified, with 20% down, future home buyers that are waiting....

My weekly paycheck is now $2700 more. I Love it.
I'm spending $25 more on gas, and $25 more on food weekly, so my net increase to my paycheck is $2,650.
Nice!

Posted by: Laker | June 18, 2008 at 01:56 PM

Laker/clown, Unless you're shopping for a home in the areas that most consider the armpit of soca, you will never see the mythical savings you hope for. This is how the MEDIAN works: Compton, Palmtucky, etc down 40%. Nicer more desirable areas with good schools down 10-15% thus the skewed dropped in median.

[realtor]

thanks shocky. all these housing bears don't realize that the median going up is the sign of a bull market, and the median going down is a sign of a bull market. for good houses, right?

[firesale]

Hey, puckhead and shockg !

Thanks for the $2,700., this week, and
the $6,500., last week !!!

The only thing better than getting these
perks is knowing they're coming out of
your hides... I mean equity.

Cheers!

[sandiegan]

San Diego is listed as having a $380K median home price.

Wow.

Since rent on that median home is about $2K/mo here (it's probably higher), that's a price to rent ratio is 190! [Or 15.8 if you use yearly rent.]

How low can it go?

BTW, here's a rental example in that range:
http://sandiego.craigslist.org/csd/apa/723473133.html

Gotta love that front security enclosure!

[Laker]

Shcokg, Tarzana South of the Boulevard is NOT armpit of soca. It has actually good schools, and is clean and quite.
Check this one out.
Also GDC, for you since you asked here is another sold for in 2005-6, got foreclosed, now sold for...
19577 Wells Dr. Tarzana 91356 2600 sf 3/3 with large 13000 sf flat lot, pool, etc.
Sold Dec 19, 2005 $1,250,000
Sold Jun 06, 2008 $740,000.
Zillow says it is "worth" $1,008,000

Based on my calculator, this is a $510,000 loss (drop) or 41%.

Not sure if I gave you this but :
5051 Medina Rd Woodland Hills, CA 91364 2200 sf 4/2 on 20,000 sf lot
Sold Oct 10, 2006 $1,100,000
Asking june 2008 $ 527,900
Zillow says it is worth $795,000
I believe it is in escrow.
Price loss (drop ) $572,000 or 52%...

Conclusion: We are starting to see banks slashing prices (faster than Helicopter Ben slashing interest rates...that is a feat)
Bottom line, if you want to know a good offer GDC, just cut the price of the peak by two. That is the value of the house.
You can use zillow for this as well. Just remember to slash 30% of their zestimate to get to real value...
Zillow numbers are inflated by 20-30%.

[puckhead]

Firesale,

It must kill you that my house will be paid off in about 7 years and that my mortgage is so low that I'm debating whether to go to Hawaii or a Carribean cruise this summer with the family while you're still renting and dreaming about buying in the hood that I live in. Truth hurts dude.