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Home broker dollars hit record high in July

Home broker dollars hit record high in July

July may have been the biggest month in a decade for professionals involved in buying and selling existing Orange County homes, new industry figures show.

Housing deals transacted through the broker-run California Regional Multiple Listing Service generated $ 2.39 billion in Orange County in July, the San Dimas-based organization reported.

That’s the most for any month since the summer of 2005. It’s also up from June’s huge bounty of $ 2.37 billion.

The only months to see more dollars transacted were March through June 2005 and August of 2005, CR-MLS figures show.

It also beats July 2005’s tally, making it the hottest July since the listing service began tracking housing numbers in 2005.

For the year as a whole, home sales dollar volumes here totaled $ 13.4 billion, CR-MLS reported. That’s the biggest pile of cash to change hands in the first seven months of any year since 2005, when volume totaled $ 15.4 billion.

The CR-MLS maintains the region’s listing system in which real estate agents post homes for sale and list terms for compensating agents who bring them buyers.

CR-MLS sales numbers don’t include all transactions. They exclude such deals as pocket listings (deals done privately between buyers and sellers outside the MLS), for-sale-by-owner transactions and most new home sales.

But July was a sales high for those working within the system, with 3,227 MLS transactions. That’s the most for any July since July 2005.

The average price per sale was $ 741,289, down from June, but the highest July average since 2007.

The combined increase in sales and prices boosted July’s overall dollar volume 26 percent year over year, CR-MLS figures show.

Record dollar volumes translate into bigger pay days for the industry, including agents, termite inspectors, home inspectors, mortgage brokers, appraisers and escrow companies.

Assuming that the typical real estate commission remained a constant 6 percent (it actually varies), that would mean real estate brokerages raked in $ 143.5 million in commissions in July. That’s nearly $ 30 million more than in July 2014 and almost twice the amount paid in commissions in July 2011.

Year to date, Orange County home sales generated about $ 805 million in real estate commissions, up $ 116 million from the first seven months of 2014.

Contact the writer: 714-796-7734 or jcollins@ocregister.com

The Orange County Register – News Headlines : Real Estate News