Southern Cal home sales jump in July! Approx. 13.8%

Hot off of the Presses for August 19, 2008 I am sharing some great news with all of my clients regarding the Real Estate Market.
So Cal home sales rose last month for the first time in nearly 3 Years!!! Why, you ask? Because of decreased home values in the amount of 31% in some areas that have literally lured home buyers back into the market. If you think about the inactivity at present and in the most recent past it is a wonder that we haven't see more activity from buyers as they have been "sitting on the fence" en mass! For the most part it is the "first time" home buyers that are "jumping off the fence" because a lot of them aren't concerned about waiting for the market to drop even more. Their thinking is that prices are low enough and the selection is there to choose from. Their plans are long term as this is their primary home so their philosophy is...I'm going to sit and watch my investment accrue equity again and enjoy the tax benefits for the long term.
The rise in auctions and foreclosures have helped spur activity and also affect the downturn in pricing. But eventually when home sales start to jump that closes the gap on the downturn and a minor uptick will start to show levels on depreciation tapering off. In essence what that means to me is that the low point may be right here, right now. The only other deciding factor to that for me is that rates are going to reset again one more time. The fallout will be forthcoming and that is why I am a little reserved about predicting that this is the low point.
On top of the rate reset, Lender standards are incredibly tight and unless they loosen up and there is confidence in the credit crunch, it will take even more time to gain momentum before we see complete optimism in the Real Estate market.
As always, I will try to keep you all informed. Please don't hesitate to contact me with any questions or comments. I welcome your posts!