by Calculated Risk on 6/13/2007 03:17:00 PM

From DataQuick: Continued slow for Southland home sales

Last month was the slowest May for Southern California home sales in 12 years, mainly because of sharp declines in lower-cost markets. The Southland's median sales price was unchanged, a real estate information service reported.

A total of 19,874 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 3.1 percent from 19,269 for the month before, and down 34.4 percent from 30,303 for May last year, according to DataQuick Information Systems.

Last month's sales were the lowest for any May since 1995, when 17,712 homes sold. The May 1995 total was the lowest for any May in DataQuick's statistics, which go back to 1988. The strongest May was in 2005, when 35,557 homes sold. May has averaged 27,123 sales.

And DataQuick has changed their comments on foreclosures. Last month, they wrote:

Foreclosure activity is rising but is still within the normal range in most areas.

But now they note:

Foreclosure activity is high, although foreclosure properties are not yet a drag home on home values in most markets.

Rising inventories, high foreclosure activity, and falling sales ... it's not hard to connect the dots on what will happen to prices.