The median price of a single-family home for March 2012 was
$291,080, a 1.6 percent increase compared to a revised $286,550 for
March 2011, and a 9.2 percent increase compared to February’s median
price of $266,660. The month-over-month increase was the largest since
When breaking up prices by specific regions, the San Francisco Bay
area was an exception, seeing a year-over-year decrease of 1.6 percent,
but a 9.1 percent month-over-month increase.
“In areas, such as Los Angeles and Riverside counties, where the Federal Housing Finance Agency (FHFA) wants to implement the REO bulk sale pilot program, inventory is running at levels well below the long-run average,” said C.A.R.
VP and chief economist Leslie Appleton-Young. “These low inventory
levels demonstrate that the pilot program is not necessary in
The pilot program involves the sale of government-owned REOs in bulk
to institutional investors who will convert them into rental
properties. According to C.A.R., in California, the program would call
for the sale of more than 600 Fannie Mae-owned foreclosed homes in Los
Angeles and Riverside counties.
Recently, 19 California congressmen sent a letter to Edward DeMarco, acting director of FHFA, asking him to make California an exception to the program.
C.A.R. reported that California’s housing inventory declined, with
the Unsold Inventory Index for existing, single-family homes down to 4.1
months in March, compared to a revised 5.4 months in February and a 5.4
month supply in March 2011.
Los Angeles county had a 4.3 month supply, and Riverside county had an even lower number, with 3.8 months of inventory.
San Mateo and Santa Clara counties had notably low inventories as well, at 2.4 and 2.5 months, respectively.
Not only is California’s housing inventory down, but according to
C.A.R., it takes less days to sell a home there, with the time it took
to sell a single-family home dropping to 53.1 days in March 2012,
compared to 58.9 days in February and 57 days for March 2011.