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Los Angeles Times: Southern California home prices rise 10% in February

March 17, 2010

Southern California home prices rise 10% in February
Los Angeles Times
By Alejandro Lazo

...Home prices in Southern California rose a robust 10% in February, with coastal markets such as San Diego and Orange counties posting double-digit gains and with foreclosures accounting for fewer overall sales compared with the same month a year ago, according to data released Tuesday...

... And at the higher end, the number of jumbo loans, which DataQuick defines as mortgages of more than the previous limit of $417,000, accounted for 14.8% of last month's lending. Before the credit crisis struck in the fall of 2007, jumbo loans accounted for 40% of the market. Southern California's market is not likely to return to full health until jumbo loans make up a larger share of the market, experts said.

"We need to have a mortgage market that looks sort of like it did in 1997-98," said Richard Green, director of the USC Lusk Center for Real Estate. "A healthy market demand for jumbo loans, but being well underwritten."...