Overview

The Credit Crisis of 2007 and ensuing economic recession has substantially impacted Southern California market conditions. Case Shiller index reports a 21.6% decrease in the Los Angeles MSA home price index from 273.94 in September 2006 to 214.65 in September 2013. See Chart

Taken from : http://www.calmis.ca.gov/file/lfmonth/la$pds.pdf

“LOS ANGELES-LONG BEACH-GLENDALE METROPOLITAN DIVISION

(LOS ANGELES COUNTY)

Nonfarm employment up by 32,600 jobs over the month; up 67,000 jobs over the year

The seasonally adjusted unemployment rate in Los Angeles County decreased over the month to 9.5 percent in November 2013 from a revised 9.7 percent in October 2013 and was below the rate of 10.4 one year ago. Civilian employment decreased by 9,000 to 4,510,000 in November 2013, while unemployment decreased by 9,000 to 475,000 over the month. The civilian labor force decreased by 18,000 over the month to 4,985,000 in November 2013. (All of the above figures are seasonally adjusted.) The unadjusted unemployment rate for the county was

9.4 percent in November 2013.

The California seasonally adjusted unemployment rate was 8.5 percent in November 2013, 8.7 percent in October 2013, and 9.9 percent a year ago in November 2012. The comparable estimates for the nation were 7.0 percent in November 2013, 7.3 percent in October 2013, and 7.8 percent a year ago.”

Dataquick reports:

"Southland December Home Sales at Six-Year Low; Median Price Jumps

January 14, 2014

La Jolla, CA---Southern California home sales fell to a six-year low for the month of December as investor activity eased again and buyers struggled with a tight inventory of homes for sale. The median price paid for a home jumped to the highest level in nearly six years, the result of demand outstripping supply, declining distress sales and a slight increase in the share of sales in mid- to high-end areas, a real estate information service reported.

A total of 18,415 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 6.5 percent from 17,283 sales in November, and down 9.2 percent from 20,274 sales in December 2012, according to San Diego-based DataQuick.

December’s sales gain from November is normal for the season, though it was weaker than usual. On average, sales have increased 12.4 percent between November and December since 1988, when DataQuick’s statistics begin.

Last month’s sales were 24.1 percent below the average number of sales – 24,254 – in the month of December. Southland sales haven’t been above average for any particular month in more than seven years. December sales have ranged from a low of 13,240 in December 2007 to high of 36,865 in December 2003.

“Sales have fallen short of the same period a year earlier for three consecutive months now, and the pitifully low inventory is the main culprit. The jump in home values over the last year suggests we’ll eventually see a lot more people interested in selling their homes, which would help ease the inventory crunch. More supply would put downward pressure on prices, as would rising mortgage rates. But there are reasons to believe we’ll continue to see upward pressure on prices, too. Home building has risen but remains at relatively low levels, meaning no major boost to the overall supply of homes for sale. Meanwhile, demand is being fueled by a gradually improving economy. Also, some of the people who lost homes during the foreclosure crisis will be looking to own again,” said John Walsh, DataQuick president.”