PRICES AND FORECLOSURES

Homes in or facing foreclosure currently account for more than one-third of sales. Activity in Southern California increased in March while the median price falls. According to DataQuick, nearly 38% of Southern California homes sold in March had been foreclosed at some point in the prior year, up from 8% in March 2007.

The traditional spring home-buying season is off to its worst start in 20 years, with sales so weak that foreclosures now account for more than one-third of all market activity. Home sales typically pick up in spring, when parents with school-aged children look to buy and move before the new school year starts.

This year was no exception: March sales in Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties were up 18.8% from February. But that increase pales in comparison to previous seasons. For the last 20 years, March home sales have on average been 38% higher than February sales, DataQuick said.

Information taken from April 16th LA Times