Market Trends

California housing market is on the mend

California

Spurred by government aid, the California housing market is on the mend. A special $10,000 state tax credit for home buyers to purchase a property after May 1, 2010 is aiding a slumping market that hasn’t seen home prices as low as they got in decades. The bottom of the housing market in California is in the rear-view mirror.

Despite the expired federal tax credit, home sales in the state should continue on a stronger pace as a result of the state program, but that doesn’t mean they’ll be steady. Low mortgage rates and distressed property sales are projected to sustain a recovery in the state’s markets. But the improvement won’t happen quickly.

Home sales have improved over the last two years, but still have a long and winding road to get through the tough economic environment. California still has to recover from high unemployment, the most critical element in a housing market recovery since unemployed workers don’t qualify to buy homes.

Are Banks Being Unreasonable with Pricing Their Inventory?

Active listing inventory and the distressed inventory has slowly increased from 2,555 total foreclosures and short sales at the beginning of the year to 2,991 today, a 17% increase.  Not quite the 37% increase like the total inventory, but, none-the-less, significant. 

Foreclosures have increased from 375 at the beginning of the year to 533 today, a 42% increase.  Short sales have increased from 2,180 to 2,458, a 13% increase.  There have been more foreclosures to hit the market thus far this year, but there are reports from the trenches that many banks have placed some of their foreclosed homes on the market at unrealistic levels and are not moving.  Do not get me wrong, distressed sales are still on fire. 

Also:

  • The number of distressed homes on the market increased by 97 homes in the past 2 weeks and now total 2,991, or 30.3% of the current active inventory. 
  • The number of foreclosures within the active listing inventory increased by 54 homes in the past 2 weeks from 479 to 533.  The expected market time for foreclosures is 1.58 months.  
  • Short sales, where a homeowner tries to sell a home for less than the outstanding loan, if the lender approves, went up by 43 homes over the past 2 weeks and now total 2,458.  The expected market time for short sales is 1.97 months. 

Most buyers are still looking for a deal, so there’s a lot of competition in purchasing distressed homes.

Call me today, I am Here to Help: 949-306-8520

Best 25 Housing Markets 2010 Update

 Rank

 Real Estate Market

    Forecast
    1.    Detroit, MI        21.5%
    2.    Cleveland, OH        17.8%
    3.    Cincinnati, OH        12.7%
    4.    Oakland, CA        12.1%
    5.    San Francisco, CA        11.9%
    6.    San Jose, CA        11.8%
    7.    Columbus, OH        10.3%
    8.    Los Angeles, CA          9.4%
    9.    Orange County, CA            8.5%
  10.    Grand Rapids, MI          8.4%
  11.    San Diego, CA          7.4%
  12.    Inland Empire, CA          7.4%
  13.    Sacramento, CA          7.0%
  14.    Arlington, VA          6.8%
  15.    Lafayette, LA          6.8%
  16.    Denver, CO          6.7%
  17.    Alexandria, VA          5.9%
  18.    Boulder, CO          5.9%
  19.    Des Moines, IA          5.7%
  20.    Baton Rouge, LA          5.5%
  21.    Fargo, ND          4.3%
  22.    Juneau, AK          4.2%
  23.    Davenport, IA          4.2%
  24.    Austin, TX          3.6%
  25.    Charleston, WV          3.1%