As financial experts continue to say that the economy is close to beginning a recovery, home prices still continue to fall.
One area where this increased activity is taking place is in resale sales. Most of California's increased volume is from distressed properties such as foreclosures, REO's and short sales.
Experts feel that the housing market will truly not begin a turn around until there's some sort of price stability in the home sales market and currently that is just not happening.
Recent television campaigns by the National Association for Realtors have been advertising that now is the perfect time to buy. Foreclosed and distressed properties continue to bring out new first time buyers where these properties have been sold at huge discounts.
One positive aspect of the falling home prices is the fact that they are not dropping nearly as fast as they had in the fourth quarter of last year and the first quarter of this year.
Affordability still remains the hot ticket for home sales and across the nation home prices are much better now than they have been in years.
An important part of affordability is the ratio between income levels compared to home sale prices and today these numbers are improving almost daily. More and more Americans are finding the opportunity to jump from renting to buying while at the same time spending less money per month.
Sources at RealtyTrac report that nearly 70 percent of REO's at the end of 2008 were not listed for sale, and in turn they were not recorded in the home supply numbers which will continue to put a negative spin on home sale prices.
Experts say that if potential buyers are waiting for much more of a decline they may be surprised to find that while home prices may continue to drop, interest rates may begin to rise. Currently, interest rates remain very low but they are not expected to stay there too much longer.
Like the classic television commercials always say at the end, "Act now while supplies last."