Activity Increases in CA Housing Market

June 20, 2012 / Russell Legato, Residential Property Analyst

There are more sales in the CA Housing Market today than there have been for the past three years. It continued to grow in May, which is the third month in a row that witnessed an increase. Home sales are well above what they were in May of 2011.

Activity Increases in CA Housing Market

New prospective homeowners realize they are dealing with a market that has now bottomed out and is ready to move up once again. Those who wait too long will miss out on the chance to lock in low interest rates on their mortgages. Interest rates are still unbelievably low and those first time buyers are not going to wait. Rather, they are poised to take action to get them before they rise, along with the lower prices on many homes.

More than 90 Realtor associations along with MLS report that single family homes in California increased in number by 3.4 percent between April and May. Sales in May went up by 21.5 percent compared to May of 2011. Realtors are ecstatic over the numbers because it is the highest increase in this category since May of 2009.

California’s statewide figures are based on the number that will be sold this year if real estate sales continue at the same speed. The figures for May predict a good year in 2012. All figures are adjusted for seasonal and other factors that experts take into account.

The market in California is growing more stable pricewise. The single family dwelling had a median price of $312,110 in May. The last time the state had such high prices was in September of 2010.

The median price increased 1 percent to $309,050 in May of this year and was 27.3 percent more than the rock bottom median price of $292,850. That figure was recorded in May 2011. One year later the figure for May 2012 was a whopping 27.3 percent higher than the median price in February of 2009.

Strong sales occurred in the coastal properties, which are typically priced higher. This is especially true for the Bay Area in San Francisco. Much economic growth is seen there.

Housing inventories have diminished as of May of this year. Houses for sale averaged 46.6 days on the market in May. In April it took 48.9 days. In May of 2011, it took 48.9 days. These figures are calculated by taking various factors into account.

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