California April Home Sales up

April home sales have improved about 4.8 percent from March of this year according to DataQuick, a California real estate research and data firm. This seasonal increase in sales is fairly typical as the home buying and selling season begins. But looking at the year over year sales, they have reported a 21.9 percent increase from April 2008. That is a respectable bounce and could signal a flattening or potential turning point in the market. There are many unlisted bank owned homes and "Shadow Inventory" which represents a large supply issue but if these homes are slowly listed, the market could reabsorb these without having a large negative impact on prices.
The first time home buyer credit has been a boon to buyers looking to get into this market but are looking for the extra push to get them off of the fence. There tends to be a mentality that keeps people on the sidelines until "Proof" of a bottom is in. The only problem with this approach is that if a buyer waits until everyone else is buying, they are typically competing with other buyers on the same house which creates a competitive bid process. First time buyers with little money down are at a disadvantage to a cash or large down payment buyer. From a seller's prospective, there is more risk that a low down payment borrower can actually close or that there can be delays in closing which is not what a seller wants to deal with.

If you are an investor and want to take advantage of these low prices - believe it or not, these prices are very attractive on a cash flow basis if you're an investor - call me and we'll discover some very good investing opportunities.
If you're a first time buyer - I can help you get started in your first home.
Visit Contra Costa Homes for Sale or call 925 788 5476