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Home prices drop 9 percent (Posted Date :Friday, February 29, 2008) |
Ownership becoming more affordable
Prices of existing homes in the Victor Valley dropped 9 percent last month and 60 percent of homes sold in January were bank owned — double December's rate, according to a report released Monday.
Since January 2007, prices of existing homes have fallen 32 percent, according to figures from the Victor Valley Multiple Listing Service compiled by Larry Trombley, an agent with Century 21 Rose Realty.
“I really don’t know for sure, but I’m hoping we’re pretty close to the bottom,” Trombley said. “It makes sense for buyers to buy now and the phones are ringing. But we still have a lot of inventory, so I don’t know where it’s going to end.”
With the declining prices, one out of 23 Victor Valley homes were sold in January — a 2.4 percent increase from December. Industry experts say that’s about a 23-month inventory of homes for sale.
The average existing home sold in January was 16 years old, 2,030 square feet and selling for $243,377. A year ago, the average home sold was smaller and sold for $310,965.
Recent interest rate cuts by the Federal Reserve are making mortgages more affordable. And Trombley noted that the slight rise in December sales is encouraging.
Jim Phillips, a broker with Century 21 Fairway Realty, has noticed the surge in repos.
“I see a great deal of foreclosure business, and that’s going to affect pricing. So I’m telling sellers to be competitive in their pricing.”
During a Jan. 31 economic forum, Robert Kleinhenz, deputy chief economist for the California Association of Realtors, said the Victor Valley’s housing market may be leveling off. He added that a local real estate recovery is at least six to 12 months off.
High Desert Home Sales for January 2008
|
Area
|
Homes for Sale |
Sold this Month |
Ratio of Sold |
$ per sq.ft. |
| Adelanto |
309 |
14 |
1 of 22 |
$107 |
| Apple Valley |
914 |
33 |
1 of 28 |
$129 |
| Hesperia |
887 |
40 |
1 of 22 |
$122 |
| Phelan/Pinon Hills |
311 |
16 |
1 of 19 |
$117 |
| Spring Valley Lake |
124 |
9 |
1 of 14 |
$165 |
| Victorville |
1,179 |
51 |
1 of 23 |
$107 |
| High Desert |
3,724 |
163 |
1 of 23 |
$119 |
Source: Century 21/Larry Trombley
By : Daily Press |
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