Southern California Home Sales Figures Eroding

Southern California Home Sales Figures Eroding

Southern California's housing market continued to contract last month as Los Angeles County's home price appreciation shrunk to its lowest level in six years while San Diego County's retreated deeper into negative territory, data released today showed.

Fewer buyers entered the market in August, eroding sales to levels not seen in nearly a decade. In Los Angeles County, the number of homes sold last month — 9,193 — was the fewest since August 1997 and represented a 21% drop from year-ago volumes, according to La Jolla-based research firm DataQuick Information Systems. August was the ninth straight month of plunging year-over-year sales rates.

The weakening real estate market has prompted debate over its severity. In recent days, national housing industry leaders have grown gloomier in their outlooks and now predict a longer-lasting housing slowdown that will likely eat away at price gains made during the six years of the housing boom. Nationwide, sales have plunged and price appreciation has cooled in many once-hot U.S. markets.