California Has The Last Laugh!

In spite of all the disheartening reports we have heard singing the California real estate blues, this sunny state has finally turned a real corner!

The realty market in the State of California which took so much of a beating over the last year is finally winning the battle. For over two years, published statistics have shown decreasing sales, but now an increase in single family homes has finally been recorded. The sales-volume figures of April 2008 have shown a two point five per cent increase over the same figures for April 2007.

Properties in Orange County show that seventy five per cent of areas have experienced increased transactions over April 2007, in spite of the fact that single family homes and condo property prices have risen in the majority of these sought-after areas.

Added to that, two of California’s cities have grabbed the top two places in a 2008 survey on the ‘Best City for Home Sellers’ list. This list has been compiled by Forbes magazine and it names San Jose and San Francisco as the number one and number two spots respectively. This is pretty encouraging considering these California cities were up against such giants as Austin Texas, Seattle Washington and San Antonio Texas, all of whom were placed in the top ten.

According to a spokesman for the California Association of Realtors many of the buyers who have boosted the sales figures are first time buyers who are searching out houses in the low to middle price range.

A compelling factor in the increase of sales is the fact that many home owners have accepted that the price bubble of the past was an unnatural increase which artificially pushed up house prices. Many home-owners have brought their asking prices back down to reality.






Certainly this has been the case in Monterey County where many homes have reflected well over a thirty per cent drop in their asking price. In this high end realty market this brings the average house price to less than half a million dollars, and sales have increased there by sixty five per cent.

In the case of the ‘Best City For Home Sellers’ list, which San Jose and San Francisco topped, other factors came into play. In order to assemble their list of the top ten, Forbes investigated several aspects of each city, including construction start ups, job creation, the tightness of the market, unsold inventories and home vacancy rates.

Another factor that has lately become more relevant was also analyzed and this was the effect of the tighter restrictions that have come into effect on lenders.

It is an accepted truth that California seems to be a known trendsetter for the rest of the USA; let’s hope this proves to be the case once again.

Find San Clemente real estate and connect with industry-leading Orange County Real Estate Agents at www.HartanovTeam.com.

California Has The Last Laugh! / Author: Drew Hartanov