House sales are up in California while prices have declined for the thirteenth consecutive month from the previous year:
Home sales rose in California last month but prices fell sharply as fewer high-end properties sold.
Market researcher DataQuick said Wednesday that more than 34,000 homes and condos were sold in the state in October, up more than 4 percent from the same period last year but down nearly 4 percent from September.
The median sale price was $240,000, down more than 6 percent from October 2010. It was the 13th straight month that prices have declined from year-ago levels.
That’s less than half of what prices were at their peak in 2007. Indeed, they’re lower than they’ve been since 2000. As long as house prices keep declining, don’t expect residential fixed investment to lead an economic recovery.
Multi-family is doing ok lately. I had a link in a previous attempt but it got spam filtered.
I’m moving back to Florida next month and it looks like the housing market there is bottoming, at least in the area I’m familiar with. I won’t be buying though, since we’ll only be there 2-3 years. The rental market is pretty hot though, with pretty rapid turnover.
@Andy, I’ve friends that just moved to the Tampa/St. Pete area and they’re leasing for now, the landlord insisted on including an option to buy at the end of the lease (at no apparent extra cost).
There are a lot of properties like that – for rent, but also for sale. I’ll be on the opposite side from Tampa, in the Cocoa Beach area.
Sam, you’re right about residential income property. Their values, especially along the popular coastal areas are holding, mainly because rents are holding, if not going up, which supports mortgage payments.
Actually, the CA coastal zones have had greater immunity to falling home prices than inland areas, especially the Riverside, San Bernardino, Lancaster etc. suburbs of Los Angeles.