The real estate conditions are right in California -- falling prices, pent up demand, low interest rates -- to bring about a perfect storm of real estate sales, creating a hot market statewide. While some prognosticators tout the woes of price drops of up to 50 percent, buyers are seeing the devaluation as a signal to get off the fence. And they are doing just that with a vengeance.
Statewide, homebuyers purchased at an annual rate of nearly 490,000 homes in July -- up 43 percent from a year ago. July marked the third consecutive month for home sales to top the 400,000 mark, according to California Association of Realtors President William Brown.
"Year-to-year increases in the number of transactions ranged from a 6.7 percent increase in the San Francisco Bay Area to a 176.5 percent increase in the Riverside/San Bernardino region," he says on the trade group's web site. "In general, greater percentage gains occurred in lower-priced areas that had been most adversely affected by the market downturn since late 2005 and that are concurrently experiencing the biggest declines in prices."
The inventory of homes in California continues to drop from last year's levels as well. For the month of July, there is a 6.7 month's supply compared to last July's 10 month supply of homes.