Home Sales Continue To Rise In California

Any sign that the economy is beginning to get back on the right track is encouraging and that is just what is coming from the state of California. For the 11th consecutive month, home sales in California rose. From the month of April to May there was a 3 percent rise, which contributed to the more than 22 percent rise from the same time last year.

In California alone data has shown the total number of homes that have been sold in California totaled at 39,051 in May. With these totals, the number of houses sold has increases for 11 consecutive months as sales of $500,000 plus homes have also begun to make a comeback.

Not only are home sales continuing to increase, but the median home price is starting to go up as well. There was a 4 percent increase from April to May with the median home price in May set at $230,000 in California. While this is signs of improvement, the downside is that this year’s median price in May was still down more than 32 percent from May 2008.

Everyone knew it would be a process to get through the hectic economy and real estate market. Although no one anticipated it to get this bad or take this long, little signs are beginning to show through the dark and gloomy cloud of the recession.

Southern California had a total of 20,775 new and resale houses and condos that closed escrow in various areas including San Diego, Orange, Los Angeles, Venture and Riverside. This number was up slightly from April and was up drastically by 22.2. percent from a year ago.

There was some encouragement over winter as the number of homes lost to foreclosure declined. However, this was followed up by incredibly low prices on homes in the spring. With these bargain prices, sales have begun to rise a bit in the mid-to high-end markets.

Homes in six Southern California counties increased as much as 1 percent just from April to May. This was a huge deal as it was the first month-to-month increase in close to two years. In addition, homes that were more than $500,000 also rose by nearly 2 percent.

Despite all of these impressive and encouraging numbers, one thing remains; the housing market is still greatly struggling. All of the numbers continue to be far lower than they were just a year ago. The only hope is that the steady increase will continue month after month as the economy begins to work back into shape.