State of the Housing Market in California

Last week the California Association of Realtors released their annual State of the California Housing Market Report. Among the findings:


• Last year 47% of all homes sales were to first time buyers – the highest percentage since 1995 and well about the historic average of 38.6%

• More than half of those first time buyers bought a home in distress, either a bank owned property or a short sale property.

• REO/foreclosures and short sales accounted for almost half of all sales in 2009, up from nearly 36% the year before.

• Statewide the median price of distressed properties was down nearly 25% in 2009. Non-distressed property prices dropped about 10% in last year.

• Nearly of third of all sellers in 2009 sold at a loss – the highest percentage on record and three times the historic average of 9.5%.

• The median price of California homes hit bottom in 2009 and have been increasing every month since then.

• Sales of home priced above $500,000 started to pick up at the end of last year, ending 2009 with 3% more high end sales than in 2008.