California home sales hit new low in July

August 17, 2011

California home sales dropped to their lowest level in 16 years last month as potential buyers held off purchases because of unstable markets and fears stemming from the debt ceiling debate. [Business Week.com]

An estimated 34,695 new and resale houses and condos were sold statewide last month, an 11 percent decline from June and 1.4 percent decrease from July 2010, according to San Diego-based DataQuick.

California home sales dropped to their lowest level for the month of July since 1995 and the second lowest since 1988, when the firm’s statistics begin.

DataQuick analysts attributed the decline to heightened economic uncertainty in July, when would-be buyers and sellers watched the political drama over the debt ceiling unfold in Washington.

“More people were getting cold feet as news on the economy worsened and people worried about the possibility of the nation defaulting on its debt,” said DataQuick analyst Andrew LePage. “There were plenty of reasons for some people to retreat to the sidelines as the future becomes less certain.”


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8 Comments

  1. rogerfreberg says:

    there is value in liquidity…

    (-1) 1 Total Votes - 0 up - 1 down
    • r0y says:

      there is no value in fiat currency…

      (1) 1 Total Votes - 1 up - 0 down
      • WiseGuy says:

        rOy, once again you offer up a cliche’ that is absolutely untrue. Nearly everything you and I and others reading this own was obtained in exchange for “fiat currency”. Fiat currency has value as long as people believe it has value. Same with gold.

        So how about you tone down your obsessive tendency to exaggerate and mislead in your attempt to bolster your extremist political anger?

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  2. racket says:

    According to my mortgage calculator at google, a $300,000 mortgage at 5% (fixed) for 30 years can be had for a $1610 monthly payment.

    As long as the fed keeps interest rates at this artificial low rate, it no longer looks “cheaper to rent in the long run.”

    In fact, if the banks would actually loan me money at their published interest rates, I would be buying houses all day long and letting you pay my mortgages.

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    • WiseGuy says:

      I respectfully disagree with your conclusion. I suspect your calculations didn’t include all the relevant factors. Also, I’m curious, what percentage yearly appreciation of your potential home did you use to make your calculation?

      Granted, there are bound to be some good deals out there, but in general buying a home on the Central Coast is not always going to be a better deal than renting. Part of the calculation also needs to include where you would invest the money if you didn’t spend it on a house.,

      The bottom line is that the old mantra of “Why rent when you can own?” these days CAN be answered truthfully with “Because it is cheaper in the long run when all factors are considered.”

      (-1) 1 Total Votes - 0 up - 1 down
  3. WiseGuy says:

    This is more good news, as it suggests home prices will keep going down and may even reach reasonable prices. As it is now, even considering equity, it is generally cheaper to rent in the long run.

    The idea that home prices should continue escalating is unsustainable and hurts our economy.

    (0) 2 Total Votes - 1 up - 1 down
    • r0y says:

      That coupled with the Government and Fed’s incessant desire to steal our wealth via inflation, we should be able to afford home by March of Two-Thousand Never.

      (1) 1 Total Votes - 1 up - 0 down
  4. danika says:

    I know…SHOCKING, huh? (sarcasm intended)

    (0) 0 Total Votes - 0 up - 0 down

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