Is the Bottom Near?

Is the decline of real estate sales in California slowing, suggesting that a bottom for the market in terms of transactional volume is near?

This past April may mark the beginning of a gradual turning point for home sales in California. Although last month marked the slowest April by transactional volume since 1995, it was the first month since August of 2007 that was not a record low.

In April, 31,150 new & resale condos and homes were sold in the state of California, up 26.8% from 24,565 in March and down 10.9% from 34,949 in April 2007.

Foreclosures are on the rise, up 3.4% from March representing 37.7% of the homes sold, but median prices are down 1.1% to $354,000 from March, and down 26.9% from $484,000 in April 2007. A new mix of financing and the types of homes being sold are contributing to approximately half the drop in the median price, making this an increasingly attractive market for buyers in the near future. This has been evident by the stabilization of flipping rates, and the increase in non-owner buying activity.