he California Real Estate about $412,000 in November. This
market is one of the price represents an almost 15%
fastest paced and vibrant decline from December of 2006,
in the world. Nowhere else is when the median price of houses
property traded so fiercely and was about $472,000. The peak in
competitively and at such high median house prices was reached
stakes as in this state. in the period of March to May
A recent report on the number of last year, when the price of
house sales in California, which houses averaged around
was released in December of 2007, $484,000.
showed that more than 25,000
This drop in median house
condo units and houses–both brand prices can be explained mostly by
new and resale–changed hands in the slow sales of high priced
that month. As impressive as that properties, which in itself is
figure is, it was in fact the direct result of instability
virtually unchanged from the in the credit industry. 17,500
house sales figure in November, homes purchased in California in
and is actually down more than December 2007 were bought with
40% from November of 2006, when conforming loans amounting to
house sales registered at 43,400. $417,000, which is a huge decline
Records show that there has been of almost 30% from December of
a steady decline in house sales 2006, when the number of houses
over the past 27 months, and that bought with the same loan
December’s sales were the lowest amounted to almost 25,000. With
for that particular month ever regard to jumbo loans, 4,600
since records were first kept in houses in California were
1988.
purchased for more than $417,000
Median prices for houses also in this manner, which is a
went down almost 3%–or to just decline of a whopping 70% from
over $400,000 in December–from December 2006, when houses
purchased number more than 13,200 from slightly more than
15,000. 13,100 in November–this still
Other signs show that the real represented a steep 45% decline
estate market in the state from the same period the previous
continues to move in different year, when houses sold numbered
directions. Property foreclosures slightly more than 24,200.
are at an all time high (we will
One real estate industry
discuss this in further detail analyst has declined to make any
later on in this article), and forecasts or predications about
both adjustable-rate mortgage and which way the market will go in
multiple mortgage financing has the next few months, saying that
declined drastically. At the same the present instable condition of
time, down payment values as well the market has made it impossible
as flipping rates have remained to predict which way things will
fairly constant, and buying go. Many experts agree however
activity by owners who do not that the real estate market will
occupy the properties in question stabilize soon and that a clearer
is on the rise.
picture will emerge. Until then
In Southern California, the both buyers and sellers are
extremely low level of house keeping a watchful eye on the
sales in December 2007 has caused proceedings.
many in the real estate
We mentioned earlier that
industry–sellers, buyers, and foreclosure activity is on the
lending institutions included–to rise, and indeed during the last
watch the market closely. While quarter of 2007, mortgage default
the number of new houses sold in notices were at its highest level
Riverside, Los Angeles, San in 15 years. Much of this
Diego, San Bernardino, Orange increase in foreclosed properties
County and Ventura went up .5% goes hand in hand with
from the previous month–about depreciation of home values. Many
homeowners have suddenly found border-color: #FFFFFF;
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than what the property is border-right: #BAC9FF 1px solid;
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been forced into foreclosure may align="center">
have felt the pressure of high
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Article Tags: house, houses, market
