by Calculated Risk on 4/15/2009 01:26:00 PM

From DataQuick: Southland home sales up; median levels off

Home sales in Southern California increased again last month, led by strong foreclosure resale activity in the Inland Empire. ...

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.

An increase from February to March is normal for the season. Last month was the ninth in a row with a year-over-year sales increase. March last year was the slowest March in DataQuick's statistics, which go back to 1988. The March average is 25,138.

"We're still waiting for the upper half of the mortgage market to open up. We know that sales of lower-cost housing, especially foreclosure resales in Riverside and San Bernardino counties, are driving today's market. What we don't know is how the recession has affected the more expensive neighborhoods," said John Walsh, MDA DataQuick president.

... a common form of financing used by first-time home buyers in more affordable neighborhoods is near record levels. Government- insured, FHA mortgages made up 37.8 percent of all purchase loans in March, up slightly from a revised 37.5% in February and up from 10.1% in March last year.

Regionwide, foreclosure resales accounted for 55.4 percent of March's resales activity, down from a revised 56.7 percent in February and up from 35.7 percent in March 2008.
...
Indicators of market distress continue to move in different directions. Foreclosure activity is nearing its 2008 peak ...
emphasis added

Sales are being driven by foreclosure resales (55.4% of all sales) in the less expensive areas. There are two problems for the mid-to-high end: limited financing with jumbo loans, and prices haven't fallen enough (but foreclosure activity is now increasing in the higher priced areas and that will push down prices).

As always, ignore the median price. Note that foreclosure activity is picking up again (after the moratorium).