Southern California continues to see strong demand for housing, albeit at the lower price ranges. One of the items that is important to watch is the median price of homes. Here is the press release from DataQuick.
Median Prices: ” The median price paid for a Southland home was $250,000 last month, the same as in January and February. That was down 35.1 percent from $385,000 for March a year ago. The median peaked at $505,000 in mid 2007.”
Overall Sales: ” A total of 19,486 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 27.9 percent from 15,231 for the prior month, and up 52.1 percent from 12,808 for March 2008, according to MDA DataQuick of San Diego.”
And like the Twin Cities market, the California market continues to struggle with the mid and upper bracket. Homes that would require a Jumbo loan (over $417,000 mortgage) are harder to sell.  “Jumbo loans of more than $417,000 accounted for just under 40 percent of all home purchases two years ago. Last month they accounted for just 10.0 percent.”
California is a leading indicator. Once they get it turned around out there, we will see some benefit in Minnesota if only because the national news media won’t be so negative.
