Cal Association Of Realtors Report

Homes Prices Sinking Fast

Sales decrease 28.5 percent, median home price falls 26.2 percent in February

Home sales decreased 28.5 percent in February in California compared with the same period a year ago, while the median price of an existing home fell 26.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

"Although sales rose for the fourth straight month in February by 9.5 percent compared to the previous month, they continue to be dragged down by the ongoing effects of both the credit/liquidity crunch and tighter underwriting standards that have reduced the pool of qualified buyers who can obtain a loan," said C.A.R. President William E. Brown.

Top Ten Cities for High Median Home Prices

Santa Barbara, $1,150,000; Redwood City, $875,000; Danville, $875,000; Encinitas, $842,500; Santa Monica, $787,000; Mountain View, $784,000; San Clemente, $770,000; San Mateo, $750,000; Sunnyvale, $741,750; San Francisco, $737,750; and Carlsbad, $675,000.

Top Ten Cities With the Largest Median Price Increase

Encinitas, 25.7 percent; Santa Barbara, 23.4 percent; Walnut Creek, 21.5 percent; Redwood City, 14 percent; Carlsbad, 10.9 percent; Sunnyvale, 5.3 percent; Mountain View, 3.4 percent; Rancho Mirage, 2.6 percent; Santa Monica, 1.5 percent; Los Angeles, 1.5 percent; and Santa Clarita, 0.9 percent.

This situation will have to continue to correct until price comes into line with income and the lenders reach a point where the risks in their portfolios start to look reasonable again. The only ways to do this is for the lenders to assume part of the problem by renegotiating their loans so that people can stay in their homes and keep supply off the markets. Now, they are foreclosing and undercutting agents listing prices by 20%.
The only other option besides continuing to shoot oneself in the foot is for the Govt via Fannie Mae and Freddie Mac to buy these debts and be the lender of last resort.

I know the pure capitalists among us will howl, but we did just socialize the Bear Sterns investment collapse and we are making moiney cheapo to banks through "auctions"......maybe the average citizen should also see a little help.

Thanks for Reading
Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.

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