Categorized | Residential

California Housing Market May Finally Be Recovering

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It appears that the residential real estate market in California is finally on its way to recovery. According to the most recent sales data, the total amount of foreclosures in the state has fallen to their lowest level since 2007. Sales across the country are also up, giving many economists reason to believe that the market is recovering in more than just a few select cities.

 

Many economists believe that the declining inventory of foreclosures will be a major factor in the recovery of the residential real estate market across the country. Foreclosures are typically sold at heavy discounts, which negatively impacts average home prices. As the number of foreclosures decreases, the average selling price will likely increase.

 

Housing prices are still far below what they were in 2007, though many analysts believe that they will soon rise as recovery becomes even more evident. Many expect true recovery to take place by the year 2013. However, some economists believe that the recovery is already here.

 

While the decline in foreclosures is certainly playing a significant role in the recovery of the housing market, the economy as a whole is definitely doing its part as well. The unemployment rate and overall retail sales have both shown steady signs of improvement in recent months, and are expected to continue improving as the year goes on.

 

The market clearly still has not fully regain its health. There are still some troubling factors that must be resolved in the coming months, and there still exists the fear that more foreclosures will soon surface.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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