Lasner: Demand for OC Homes at 2005 Levels

Orange County brokers’ home sales are generating more cash than the year before for the first time since the housing slump began in the fall of 2005, figures from the Southern California Multiple Listing Service shows.

SoCal MLS figures show that total sales dollars in the county from agent-supervised transactions had been down from the year before starting at least in January 2006.

But in September, cash generated from sales jumped nearly 22% above total revenue in September 2007. Revenue was up 45% in October and 3% in November, an analysis of MLS figures show.

Last month, transactions posted in the MLS — a sort of database of homes for sale managed by Realtors — generated $874 million, vs. $849 million in Nov. 2007. Revenue is up primarily because of increased sales, since median home prices were more than 30% lower last month. But the reversal is significant since it means that broker earnings are edging up slightly after nearly three years of declines.

Just talked to a fellow the other day in Sacramento. Tells me his office is doing 130 deals a month. All short sales.

One might look at this as a blood economy where vultures nest. However this is the market. Again from Lasner:

Foreclosed homes made up 55% of resale transactions in Southern California – 44% in Orange County and nearly seven out of every 10 sales in the Inland Empire – driving down prices to levels not seen since the spring of 2003, market-tracker MDA DataQuick reported today.

One commentor predicts 2009 as the bottom for S. Orange County.  It will be an interesting year. There is a Silver lining.