Housing Prices Head Into the Basement; SoCal Prices Lowest Since 2004

Typically, the spring brings a bit of a boost to home sales in Southern California, but this year saw a record dive in median home prices, continuing the downward spiral in housing sales. The lows are the result of depreciation, slow sales for higher-priced abodes and growing sales for discounted homes fresh out of foreclosure, according to DataQuick Information Systems. A total of 12,808 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 18.8 percent from 10,777 the previous month but down 41.4 percent from 21,856 in March 2007, according to DataQuick. The median price paid for a Southland home was $385,000 last month, the lowest since $380,000 in April 2004. Last month's median was down 5.6 percent from February's $408,000, and down a record 23.8 percent from $505,000 in February 2007. That peak median of $505,000 was reached several times last spring and summer. With a recession looming, analysts say potential homebuyers are taking a wait and see approach, and the market correction continues through 2008. For more info, read the release from DataQuick here.