California Home Sales Up 83 Percent

According to the California Association of Realtors, California home sales were up 83% in February 2009 over the previous year. Statewide sales numbers in CA hit 620,410 in February. According to C.A.R. president James Liptak, “Home sales in California continue to be considerably stronger than the nationwide sales figures...The market will continue to register large, but diminishing year-to-year percentage gains in the coming months, as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch.”

In February 2009, the state's unsold inventory index was 6.5 months, compared to 15.3 months in February 2008. It took a median of 51.5 days to sell a SFR home in February, compared to 69.3 days in February 2008. The inventory index tells you how many months it would take to deplete the current inventory. A 3 month inventory index signals an appreciation cycle, so we can conclude at the very least, we are in a plateau phase with a hint of appreciation brewing in the not so distant future.

Investors know the signs of a turning market. If you are new to investing, know that the window of opportunity is slowly closing on deals of up to 70% off of 2005 list prices. Make your offers now because the unsold inventory index is slowly but surely shrinking.

Enormous Wealth Will Be Generated By Investors Who Buy In This Market

Between foreclosure auctions and short sales, some homes are being sold for no more than the cost of a typical luxury car. Some AZ Home builders are even advertising newly built homes for as low as $70,000. The huge drop in home values presents a unique opportunity for investors to make a lot of money. Unfortunately, everyone will not be able to participate in this wealth building moment in time due to a variety of reasons including bad credit, job loss, bankruptcy, or the lack of savings for a down payment.

Investors who have kept a generous cash position in their portfolios will be in a great position to take advantage of current real estate prices. I've had several conversations with fellow investors wanting to know if I'm buying now and whether or not it's a good idea to add to their current inventory of properties. My reply has been, "How can you not buy at these prices?". Opportunities to buy real estate come and go but opportunities to save up to 60% on real estate are rare. In future years, investors will look back on 2008 -2009 as one of the greatest buying opportunities they've ever experienced. Real Estate profits reaching 200% - 500% of the purchase price will be the norm as we approach the top of the next appreciation cycle. Risks in real estate investments taken now will be greatly rewarded over the next decade, and I believe the profits will exponentially out pace the stock market and retirement accounts that have seen massive losses.