Home sales rose 17.4 percent as first-time buyers rushed to take advantage of a tax credit that expires this fall. The median price fell back to the $180,000 baseline, a far cry from the median price measured a year ago at $274,000. The median was last in the $180,000 range in 2001.
Leading to the median price not seen in nearly a decade have been the glut of foreclosure sales activity, joblessness and the credit crunch that has swept the nation and made borrowing a daunting task.
Real estate experts said those rock-bottom prices are spurring sales.
A total of 965 new and resale houses and condos closed escrow in the Coachella Valley in July, with the bulk representing resale single-family homes.
Greg Berkemer, executive vice president of the California Desert Association of Realtors, sees recovery in sight.
“I think we have passed the bottom in terms of sales,'' he said. “In terms of pricing, we may be rocking along the bottom for awhile. But I think we will, over time, see some more tick-ups in price.”
But it is premature to call a bottom, DataQuick president John Walsh said.
“While some data continues to hint at that, it remains an especially risky call to make given the magnitude of future job losses and foreclosures,” he said.
Uncertainty over how many more homes may tumble into foreclosure because of the risky pick-a-payment, adjustable-rate and stated income loans also makes it difficult to determine if the end is in sight.
“Even if this is the bottom, we could easily bounce along it for quite awhile. But we appear to be on course, right now, for recovery,” said Berkemer.
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