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.
Sunday, March 29, 2009
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