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OC Home Prices Fall in December Amid Tough Loan Environment

Orange County home prices fell 3% in December from November, while home sales remained sluggish amid a tough environment for mortgage loan-seekers.

The median price of an Orange County home was $565,000 in December, according to La Jolla-based DataQuick Information Systems, a unit of Canada’s MacDonald Dettwiler and Associates.

Median prices are down 10.3% from a year ago, and are off 12.4% from Orange County’s record high, set in June.

Sales in the county were off 42% from a year earlier, with 1,731 home sales in December. While modest, that’s still a 10% increase from November’s level of sales.

Across Southern California, it was by far the slowest December for home sales in more than 20 years, according to DataQuick, with a 23.5% drop from the second-lowest December on record, in 1990.

The median price of a Southern California home was $425,000 in December, a 13.3% decrease from a year ago. Last month’s median was down 2.4% from November’s levels, and is the lowest median price seen since February 2005.

The credit crunch has made it harder for larger loans to get approved, which is switching the mix of Southland homes being sold, according to DataQuick.

Sales financed with jumbo loans of $417,000 or more represented 40% of all Southland sales before last summer’s credit crunch. Now, jumbo loans make up about 22% of transactions.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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