Home Sales Activity in California Soar 65%

October 29th, 2008 by Autor

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Last September, home sales activity in California jumped by 65 percent as median home price drop by 34 percent from last year. Most of the activity was generated by bargain hunters who are buying up much of the heavily-discounted real estate properties including foreclosure homes.

The number of homes sold for the said month reached 40,317. Sales activity peaked at 69,304 last 2003.

Based on the data from MDA DataQuick, about 51 percent of the sales involved foreclosure homes. This, of course, is not surprising, considering that most states hit hardest by the housing crisis showed the same trend.

For most experts, there is no better time to buy and invest in real estate property than now. According to their calculations, it will still be another year before home price increases can be sustained.

The regions of Los Angeles and Central Valley in California, where most of these foreclosure homes can be found, are now showing great home sales activity. In some areas, sellers of these repossessed properties are receiving multiple bids and offers. Every buyer interested in enjoying considerable savings is gravitating towards these affordable properties.

And why wouldn’t these buyers flock these markets? For instance, median home price in San Francisco alone has plunged to $400,000 from $625,000 in a period of one year. Southern California median home price also fell to $308,500, approximately 33.2 percent from just the previous month while home sales activity increased by 65 percent. Again, majority of the sales transaction involved foreclosure properties.

Other counties also showed a marked increased in year-over-year annual sales in the last couple of months. According to analysts, this could be a clear sign that housing markets in these areas are starting to recover.

Despite all these positive news, it is actually still unclear if the sales trend will continue especially considering the credit crunch and high unemployment rate. Also, there are still a lot of buyers who are afraid to make any move to buy.

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