Sales transactions of homes in Southern California (Southland) rose in November 2011 from both October and also from a year earlier as investors and first-time buyers targeted homes priced below $400,000 - according to DataQuick.

Sales transactions in the $500,000 and above price range however fell 16%. Whilst sales of existing (not new) houses and condos combined rose 5.8% from a year earlier, actual sales of newly built homes fell by 15.2% to the lowest level on record for a November.

John Walsh, DataQuick president, said: “The portion of homes sold to investors continued to hover near an all-time high. Lower prices and amazingly low mortgage rates tempted those with the confidence to buy and the ability to qualify for a loan, or to pay cash.

“But these sales levels remain subpar, with new-home sales stuck at record lows. Part of it is down to the economy and would-be buyers’ uncertainty - about jobs, home prices and a potential surge in foreclosed properties hitting the market.”

A total of 16,884 new and resale houses and condos were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties during November 2011, a rise of only 0.3% from 16,829 in October 2011 but an increase of 4.2% from the 16,208 sold in November 2010.

Distressed property sales accounted for 51.3% of the Southland resale market in November, down from 52.3% in October and down from 53.4% a year earlier. Foreclosure resales (properties foreclosed on in the previous 12 months) made up 31.7% of the Southland resale market in November, down from 32.8% in October and down from 35.2% a year earlier. Last month’s figure was the lowest since it was 28.6% in January 2008.

Short sales (where the sale price fell short of what was owed on the property) made up an estimated 19.6% of Southland resales in November, an increase from 19.5% in October and 18.2% a year ago.