Southern California Prices Rise for the First Time Since 2007

For the first time since July 2007, there was an increase in the median sales price for Southern California home sales, according to MDA DataQuick, San Diego. The median sales price for May was $249,000, up 0.8% from $247,000 in April but down 32.7% from $370,000 a year ago. Furthermore, for the 11th consecutive month, there was an increase in home sales in the region as a total of 20,775 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties in May. That was up 1.3% from 20,514 in April and up 22.8% from 16,917 a year ago. May's sales were the highest for that month since May 2006, when 30,303 homes sold. Foreclosure resales - homes sold in May that had been foreclosed on in the prior 12 months - accounted for 50.2% of resales. That was down from 53.5% in April and from a peak of 56.7% in February. "We appear to be in the early stages of the market gradually tilting back toward a more normal balance of sales across the home price spectrum. As more sellers get realistic, more buyers get off the fence and more lenders offer reasonable terms for high-end purchase financing, we'll see a more normal share of sales in the more established, higher-cost areas that have been nearly comatose," said John Walsh, MDA DataQuick president. "Let's not forget we're into the traditional homebuying season right now, meaning more people are purchasing for all of the normal reasons, such as a new job or to get settled before school starts. Many are concerned with finding the right home in the right area, not just the most deeply discounted home."