June 2012 home sales volume pauses
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41,027 homes were sold in June 2012, down just 1.8% from May and up 5.3% from one year earlier. This is the first month of declining home sales since January of this year, but time will tell whether this is a reversal or merely a pause in an upward trend.
Here are some other key factors controlling California’s housing market:
Absentee homebuyers
Absentee homebuyers (a group generally composed of speculators, buy-to-let investors and renovation contractors) accounted for 27% of Southern California (SoCal) June sales, down from 28% in May 2012, but still near the record high of 30% set in February 2012. Absentee buyers made up 23% of Bay Area homebuyers in June, down very slightly from 24% in May and up from 20% one year earlier. Sales of single family residences (SFRs) to owner-occupant homebuyers, the core demographic for a sustainable recovery, remain low.
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About The Author
ft Editorial Staff
is the writing staff comprised of legal editor Fred Crane, In-House Broker Consultant Fernando Nunez and writer-editors Connor P. Wallmark, Giang Hoang-Burdette, Jeffery Marino, Carrie B. Reyes, Sarah Cantino, Matthew Taylor and Matthew Shade.
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Any spurt in home sales is thrust forward by speculative buying and lots of cash purchases, with the belief that a quick profit may be had, or that rental property may pay off handsomely if purchased at fire-sale prices.
In reality, the economy continues its downward plunge, despite false information being released by the government, and job loss continues. You can read all day that business is booming and that employers are hiring, but when you drive down major business streets (like Hawthorne Boulevard in Torrance) your own eyes tell you a very different story.
Fully 50% of the shops, banks, retail, and office outlets along Hawthorne through South Torrance and up to Torrance Blvd. are empty!
Less business, less employees, less paychecks, less money to spend, fewer houses sold—simple equation.
Add to that the simmering crisis in Europe (which has NOT gone away), the Chinese yuan rise, the projected diminishment of the dollar and you have an ugly picture.
But, hope remains. There is talk in some circles of holding the Banking Cartel, not the American taxpayer, responsible for the massive debt that burdens this nation.
They caused the crisis—let THEM pay for it.
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