Housing In California Slowly Picks Up Steam

For those savvy stock investors who are starting to make a commitment to the stock market again shows an indication of an economic recovery.  Although expectations around the country are low, we in Southern California deal with a different dilemma – cost of living.  However, even Sothern Californians expect a modest upturn and for us, the slightest growth is welcoming.

Perhaps the best sign yet that a recovery is near is the sharply improved housing data.  Let us not forget in the past it was the housing marketing that caused Wall Street to tumble down to its lowest point since the 1980s.  Indeed, a stronger housing market will play a large part in rebuilding both the national economic crisis and Southern California real estate market.

Sales for existing homes hit rock bottom in November of 2008, but as of June, the nation has seen a 7.7%.  In Southern California, sales have increase since last June.  In 2008, California real estate sales hit a low of 35,2002 while in 2004 it hit a peak of 76,669.

Outside of high foreclosure rates, high unemployment rates, and strict loan programs, the road to recovery in the housing market will take long time.  However, there is a lot of optimization around the corner.  First time home buyers are taking advantage of low interest rates.  The National Association of Realtors report that first time home buyers accounted for 29% of June resales.  Although mortgage rates increases in June to 5.36% for a 30-year loan in July, this is still historically low compared to a few years ago.