Homebuying in Southern California dropping

Home sales are dropping in Southern California, and depressed moving activity continues to be experienced across the region.

There were 18,091 homes sold in the region in September, an area comprising Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, according to MDA DataQuick. That figure was down 2.4 percent from 18,541 in August and down 16 percent from 21,539 a year earlier. It was the third consecutive month to experience fading home sales, and the report added that it was the slowest September since 2007. On average, relocating families have purchased 24,578 homes in the month of September - last month's figures were 26.3 percent below that average.

"Today's market can be characterized as much by activity that's not happening, as by the activity that is happening," said John Walsh, MDA DataQuick's president. "We're seeing distress-selling, bargain-hunting and entry-level buying, while the rest of the market is still largely on hold." He added that a number of families are postponing moving plans while they wait for the market to improve, although he does foresee a future surge in homebuying, likely led by falling mortgage rates.

To that end, families with ideas of moving may not have to wait much longer. Last week, Federal Reserve chairman Ben Bernanke said he would consider actions that would drive mortgage rates down even further, and he's since been encouraged by regional Fed presidents to act sooner than later.
 

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