California existing home sales increased 83.2% in November

Who says the laws of supply and demand do not work in today's real estate market? California home sales increased 83.2 percent in November compared with the same period a year ago, according to the latest housing report from the California Association of Realtors.

In my opinion, the main factors for this huge pick up in real estate sales are the very attractive prices combined with exceptional low 30 year fixed rate mortgages and the availibality of 3% down FHA financing.

From my estimates, the majority of these existing home sales are foreclosures or pre-forclosures. Plus, keep in mind, a pick up in sales is only the first step in forming a bottom to our real estate bust. 

The other part of the California Association of Realtors report shows the median price of an existing, single-family detached home in California during November 2008 was $285,680, a 41.8 percent decrease from the revised $490,511 median for November 2007. The November 2008 median price fell 5.3 percent compared with October's revised $301,740 median price.                                                    San Diego Realtors