Southern California home prices take another hit

The median sales price of Southern California homes fell below $400,000 in March, as the real estate market’s traditional spring bounce was far weaker than normal, a real estate research firm reported today.

Houses and condominium units in Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties sold at a median price of $385,000 last month, the lowest since April 2004, according to La Jolla-based DataQuick Information Systems.

Last month’s median was down 5.6% from February’s $408,000, and down a record 23.8% from $505,000 in February 2007.

The total number of homes sold, 12,808 in Southern California, was about half the average March sales total since DataQuick began compiling its statistics in 1988. Last month’s sales total was an 18.8% increase from February’s total but was down 41.4% from March 2007.

The February-to-March increase was about half the typical level – March home sales for the last 20 years have on average been 38% higher than February sales, DataQuick said.

The year-to-year drop in both the median sales price and total sales for March were both records. March was the seventh consecutive month of record sales declines compared with the previous year.

Foreclosed homes accounted for more than a third of homes sold last month. Nearly 38% of homes sold in March had been foreclosed at some point in the prior year, up from 8% in March 2007.

The large number of lower-priced, foreclosed homes sold dragged down the median sales price, said DataQuick President Marshall Prentice. “We continue to believe a lot of people who could be buying or selling right now are opting to sit tight until they sense we’ve hit bottom. Often what we’re left with, especially in inland areas, are sales driven by foreclosure or the threat of it,” he said.

In recent months, foreclosure resales typically sold for about 15% less than other homes in the surrounding area, DataQuick said.

peter.hong@latimes.com