California’s Real Estate Market is Coming Back

From the Wall Street Journal:

California existing-home sales slid 0.8% in February, but jumped 83% compared to the same period a year ago as homebuyers continued to flock to sharply reduced prices and interest rates in the nation’s largest housing market.

The sales of 620,410 single-family homes on a seasonally adjusted, annualized basis came as the median price of a home plunged 40.8% to $247,590 from a year ago, according to estimates released Wednesday by the California Association of Realtors. The increased sales activity from a year earlier helped shrink the inventory of unsold homes to 6.5 months in February from 15.3 months in the 2008 period, the Realtors group reported.

California’s resurgence comes as housing markets nationally are showing signs of new life, as well. Existing-home sales nationwide jumped a seasonally adjusted 5.1% in February, the biggest one-month gain since late 2003, the National Association of Realtors reported on Monday. The group said buying activity was strongest in places such as Southern California and Las Vegas, which have a glut of foreclosures.

Few experts say California is out of the woods, though. With an unemployment rate of 10.5% in February that is expected to continue to rise, they say many more foreclosed properties are likely to end up on the market, weighting down housing prices.

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12 Responses to “California’s Real Estate Market is Coming Back”


  1. 1 Miami Beach Homes March 26, 2009 at 11:51 AM

    It’s true that the employment situation may negatively affect sales or boost foreclosures but there’s certainly nothing wrong in hoping that sales will continue on the upswing. Thank you for sharing this market activity.

  2. 2 Kelli C March 30, 2009 at 5:40 PM

    Although many people are struggling with todays economy, our world today is filled with low prices that allow people the opportunity that are not affected with unemployment or struggling with money to get a good deal on a house. Now really is the time to buy a house if you can afford it. Because many more people will soon be forced to forclose their homes, prices will continue to be low and more people will have the opportunity to buy.

  3. 3 Rafael Barrera March 31, 2009 at 1:36 PM

    This is the perfect market to buy a house becuase of the job loos, forclosures and low housing costs. the jobs loss makes more people lose their homes and that intern makes houses cheap! although in the long run it might be a problem.

  4. 4 Tracy Thomas March 31, 2009 at 6:14 PM

    I think that it is a great time to buy. I think the government has also played a key role in stabalizing the housing market. They are offering many incentives on purchasing your home this year. For example your eligible to recieve a 8,000 dollar tax credit if you buy a home this year and have a gross income of less than 40,000. There’s also great programs for first time home buyers such as fha loans. I think were going to see a rehabilitation in your housing economy with people who will take better care of there homes for better neighborhood because for the first time in a long time homes are affordable.

  5. 5 nancy moussa April 5, 2009 at 7:50 PM

    The cost of buying a home is very ideal right now for those who are not really being affected by the economey right now. The bad thing about this though is that those who are affected are having to sell there houses for very little, because they can’t afford to live in them right now.

  6. 6 LEONARDO SANCHEZ ECON 101 April 23, 2009 at 2:25 PM

    Damaged employment / healthy homes for sale.

    Hello,

    Well yes there is always pros and cons in every country. Our

    problem is that somebody’s nitemare of loosing there house even

    though the house are low is an incentive for home buyers to

    purchase a good house at a sweet deal. It is in the eye of the

    beholder. One person may see doom at a sight of a house but

    another may see there dream house knocking. Its great with the

    $8,000 dollar tax credit too for 1st tim buyers too!

  7. 7 Audrey Hepburn May 11, 2009 at 3:38 PM

    Buying a house now is a very smart idea before the real estate market goes up too much. This is the perfect time for first time buyers and people just looking for something a little bigger in a decent area. It is hard to buy the big million dollar houses. Living in a richer city it is hard to see houses sell but in good areas with decent size houses and good school district are selling well. By the next year or two I feel like the market will rise and it will be much harder for young families to buy houses. The government should encourage young families to start buying and that could possibly help boost the economy or at least the market.

  8. 8 Andrew May 12, 2009 at 3:26 PM

    Being a buyer’s market, this is probably the best time to buy a house. A house is a life long investment that helps you establish many other footholds in society. Having the tax credit for first time buyers is especially nice. I think the government should try to do this more often especially if the economy looks like it is heading towards a bad spot instead of doing it while it is in one.

  9. 9 Britany Linton May 17, 2009 at 7:41 PM

    I just did my final essay on real estate and found that the recovery for this hard hit market that hit rock bottom not too long ago is an estimated 2-5 years. With recovery close in sight, I feel the economy getting stronger already and with real estate looking up I feel the recession ending soon and not prolonging into a depression which is great.

  10. 10 Santi Orona May 18, 2009 at 10:08 PM

    These figures are encouraging because they show that the economy could be recovering. The troubles of the real estate market have been well documented in the media and here at home. However, this shows that numbers are actually rising, as compared to last year. If the real estate market can improve, it shows our economy is headed in the right direction.

  11. 11 Mva89 May 20, 2009 at 8:07 PM

    This is definitely good news. It looks now that our recession has reached its bottom and that it is only going to go up from here. Now is an ideal time for people to buy a house and hopefully a lot of people will do so.

  12. 12 Carl Hernandez May 25, 2009 at 2:50 PM

    I believe that unemployment is beginning to drive home foreclosures, that will only increase. Foreclosures drive house price collapse. House price collapse hurts banks who hold overvalued mortgages on the properties that will foreclose because of unemployment. Yet we still have builders breaking ground here for more 400K Mansions in an area where median family incomes is around 40K tops!


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