This just in from the California Association of Realtors: Home sales in November were 4.7% higher than a year earlier and the median price was 5.8% higher. That’s right, the median price was almost 6% higher than 12 months earlier!
Housing, especially in California, still has a lot of issues to work through, but it is important to note these gains came at a time of serious government problems and unemployment rising to over 12%. The prices that banks were selling repo’d properties for were just too low and smart buyers were snapping them up and either selling for a quick profit or holding for a longer term recovery.
The positive price trend has been on since March-April 2009. Will buyers continue to look for bargains and compete for available inventory or will the “shadow inventory” overpower the number of willing buyers? Time will tell, just nice to see some positive numbers.