Southland home sales hit February high as prices slump
Speculators rich with cash helped push Southern California home sales in February to their highest level in five years, new data shows.
The bargain-hunters are snapping up distressed homes and dragging down the median price for a home in the region. But their presence also indicates how tantalizingly cheap home prices have sunk.
At $264,750, the region’s median home price was up 1.8% from the prior month but down 3.7% from a year prior, according to San Diego research firm DataQuick. That was just 7.2% above the past low hit during the worst of the financial crisis in 2009.
Sales in February rose 8.4% from the year prior to total 15,573 homes sold in the Southland. The buying was driven by more affordable properties. Sales of homes under $200,000 were up 9.3% from February 2011, while sales of homes that cost more than $800,000 were down 12.6% over the same period.
Many observers expect the long-suffering housing market to finally hit bottom in 2012, particularly if the jobs picture brightens. But foreclosures, tight mortgage credit and high regional unemployment remain significant impediments to a housing recovery.
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