Good news has finally come to the California real estate market. With many of the foreclosures that occurred due to the irresponsible lending policies of state and federal chartered banks now behind us prices are now finally starting to rise.
As of March 1, 2013 California real estate prices have increased 20.9 over prices from a year ago. In addition, sales activity is at a six year high and shows no indication of slowing down due to positive current economic factors. First time buyers and investor confidence are significant factors in leading to the improvement in values. It’s important to keep in mind that even after the current increase in values that the current medium sales price is still down 37% over the all-time high set in early 2007.
Most every market gauge indicates prices are up significantly over the past twelve months, even after adjusting for the type of properties sold, size, location and sales prices.
The current low inventory of available house or sale has also contributed to the increase in values.
I will have more positive news about real estate market in the days ahead.