Median home price fell 34% in August from last year, sales up 10% during period but many driven by foreclosures.

September 17, 2008: 2:14 PM EDT
LOS ANGELES (AP) -- The median home price in Southern California fell 34% in August from last year, a research firm said Wednesday.

The cost of new and resale homes and condos dropped to $330,000 last month in a six-county region.

It was down from $500,000 in August 2007 and down 5.2% from $348,000 in July, MDA DataQuick said.

A total of 19,366 homes and condos were sold last month, up about 9% from August 2007 but down almost 5% from July.

MDA DataQuick president John Walsh said much of the sales activity has been logged in lower-priced inland areas where the market has been driven by foreclosures.

"Foreclosure activity remains high, credit is still tight, affordability remains strained on the coast and the job market is soft," Walsh said. "Some expect prices to bottom out soon ... That may happen, but history suggests that few of us will time the bottom precisely."

Foreclosures accounted for almost 46% of all resold properties last month, up from 10% in August 2007 and almost 44% in July.