Thursday, September 18, 2008

California home prices plunge, another good sign

Home sales in California surged 13.6% as median home prices plunged 35% in the year ending August, according to DataQuick. Almost half the sales were foreclosure sales. Buyers are coming out of the woodwork. Prices are getting back to reasonable levels. My nephew is a mortgage broker in the Inland Empire and says he's never had it so good. The market is clearing and homes are becoming more affordable. That's great news (for everyone except those that paid too much for their homes and/or refinanced near the peak). It will be a long time before we see another real estate bubble in California.

3 comments:

d said...

I wish this was the case for homes in the LA area. Prices are still way to high. Condo prices have dropped considerably, but single family homes are still way too high.
-daniel

Scott Grannis said...

I would imagine that the higher priced homes will come down in price some, but not as much as in areas like the overbuilt Inland Empire, and they will be much slower to fall. Best to rent for awhile.

Gprofessionals said...

Yeah, I remember the time when home prices regained in 2008. But I hope that this was the last time when I saw home price rise, and after then it is continuously decreasing due to ongoing economic crisis.
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