The tax credit for first time buyers, which was due to end on the last of the month, spurred many to go into escrow in advance of the deadline. This tax credit has been expanded and will now be available until the end of April, 2010. The tax incentive, plus the current low interest rates, should help the Real Estate market continue in a positive direction.
The government along with lenders attempts to aid homeowners who are facing possible foreclosure have resulted in fewer homes on the market as well as a boost in the median price of homes in California.
There were nearly five hundred thirty-seven thousand closed sales of single family homes this past November, resulting in an increase of nearly five hundred thirteen thousand closed sales in the preceding November, and increase of 4.7%. However, sales were down from October, 2009 by 4.6%.
California's detached single family homes had a median price of $304,500 which is up by 5.8% from the (revised) median price of $287,800 for November of 2008 and up by 2.4% from the median price of $297,500 in October of 2009.
California seems to be in the forefront of national recovery, as it has been over 2 years since sales were at their lowest number, and the median price leveled out in February of 2009. Most areas in California had their lowest median prices during the first half of 2009 and are presently almost $60,000 above the lowest price in the present cycle. Meanwhile, California has the most affordable housing available in years, despite the recent increase in the median price.
While it was a bit over seven months in November of 2008, the index of unsold inventory of detached single family homes this past November was four and a half months. (This is the time needed for the supply of homes to run out at the present rate of sales.) In November of 2009, it took approximately 31 days to sell a home, while it took approximately 44 days in November of 2008.
In November of 2008, 30 year fixed mortgage interest rates were just above 6%, while they decreased to just under 5% in November of 2009.
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