Southern California has continued to show some resiliency in transaction volume albeit at much lower home prices. According to DataQuick which tracks transactions in California, home sales were up 26.9% in November 2008 compared to November 2007. Home prices are down about 35% from a year ago and more and more of the overall transaction volume is driving by buyers purchasing foreclosures.
DataQuick reports that 55% of the sales in November were foreclosures.
I like tracking California because I believe it’s the leader in real estate trends. It will be interesting to see when that market finally turns.
In the Twin Cities we are seeing an increasing portion of the overall transaction activity go to the purchase of foreclosed homes. The big question I have is that once all the $150,000 and less homes have been purchased, will transaction activity continue and move up the price chain, or will it really come to a stand still. Only time will tell.