by Calculated Risk on 9/13/2006 06:03:00 PM

The LA Times reports: SoCal Home Sale Figures Eroding

Southern California's housing market continued to contract last month as Los Angeles County's home price appreciation shrunk to its lowest level in six years while San Diego County's retreated deeper into negative territory, data released today showed.

Fewer buyers entered the market in August, eroding sales to levels not seen in nearly a decade. In Los Angeles County, the number of homes sold last month — 9,193 — was the fewest since August 1997 and represented a 21% drop from year-ago volumes, according to La Jolla-based research firm DataQuick Information Systems. August was the ninth straight month of plunging year-over-year sales rates.
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In Southern California, the trend points to continuing softness. In August, the median home price in Los Angeles County rose 4.7% over the same month last year to $517,000. That was the slowest rate of appreciation since the housing boom began six years ago and was below the county's historical average growth rate of 7%, according to DataQuick.

What's more, prices seem to have ceased rising on a month-to-month basis. August's median of $517,000 was virtually flat with June's and July's.

San Diego County, considered a bellwether for the rest of Southern California, saw its year-over-year median price fall 2.2% to $482,000, which was the lowest since March 2005, when the median was $484,000. It was the biggest percentage decline since December 1995.

"It's pretty clear that a price correction is underway in San Diego," said DataQuick analyst Andrew LePage. "Given the trend, it's possible that Los Angeles County could be at zero appreciation — or a little above or a little below — by the end of the year or maybe sooner."