Home prices in Southern California increased 14% last month compared to a year earlier. Orange County had a 12.2% increase in their housing prices, with the average home around $432,000. There were less foreclosure sales and more regular sales, something the market has not seen in a while. Tax credit, low prices and interest rates seem to be the reasoning behind the purchases.
When home prices increase this represents a positive turn around in the economy as well. With so many foreclosures on the market a year ago have those numbers decrease last month shows positive signs in the market as well.
March had a total of 20,476 houses sold, which is 970 more home compared to a year ago, March 2009. The majority of the homes sold within the past few years were bank owned homes which were sold at the lowest prices possible.
The main focus is how long market stability will last. Is the good news only for the month of March or will it continue to prosper throughout the year? Government control is not going to last forever, the $1.25 trillion fund has already ended, which many believe will cause interest rates to raise. The FHA has imposed stricter lending policies that will make it difficult to borrow.
Another stimulus package was added which will provide new homeowners with $10,000 when they purchase a newly built home. May 1st will be the effective date for the package. New borrowers will benefit and so will the housing market because more new homes will be sold instead of foreclosed or short sale homes.
Contributor, designer & admin for JohnHart Gazette.
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