A recent article in the Press Enterprise states that home sales in the Southern California area have reached their highest level in the last 5 years. The article goes on to state that home sales have been spurred by cash buyers and investors looking for properties under $300,000. The article also shows that the average cost of homes has dropped nearly 1% from last years sales. In Riverside county, sales have increased by 5.9% from sales last year.
While I spend much time discussing the trends of real estate sales, the reality is that it is very difficult for the average homebuyer to find a home. While prices are depressed, financing is difficult. Further, the competition for affordable housing is nearly insurmountable as cash investors are ready to purchase homes that would otherwise go to first-time homebuyers.
Despite the difficulty in getting into the real estate market, there are some encouraging trends. Home prices seem to have settled and banks are doing a much better job of dealing with short sales. The result is that homes are not becoming phantom inventory but are part of the market. All of this, however, may change shortly as many economists and banks warn of a foreclosure wave. This wave is a result of the recent settlement for robo-signing foreclosure abuses. As a result of the settlement, banks are no longer waiting for a settlement before completing foreclosures.
If you are facing foreclosure, you have legal options. Contact our office at (951) 801-5570 to speak with a qualified attorney to explore your options.