More data has just come out that indicates that the housing market in California is stabilizing. While we have seen an increase in the number of properties being sold for a few months, the median sales prices have been steadily decreasing. The month of March, however, has bucked the trend.
Sales of existing single family homes increased 63.8 percent in March 2009 over March 2008. The significant news is this: The statewide median price of an existing single family home INCREASED 2.2 percent in March 2009 compared with February 2009. This is the first month to month increase in statewide median sales price since August 2007.
Further, the unsold inventory index fell to 5 months in March 2009 compared with 12.2 months in March 2008. This means that it would take 5 months to sell all of the homes on the market at the current rate of monthly sales.
While we have not seen enough evidence to suggest that prices are in a sustained period of rebound, we do believe we have seen sufficient evidence that the bottoming process of the real estate market is well under way.
One other item to note is that the strength of the Canadian Dollar versus the U.S. Dollar has increased substantially over the last two months. The Canadian Dollar was worth about $0.77 U.S. Dollars in the beginning of March, while it is now valued at just over $0.85 U.S. Dollars. This increase represents approximately a 10% increase in purchasing power for our Canadian friends.
If you have any questions about the status of the real estate market here in the desert of Southern California or specific questions about the value of your home and how long it might take to sell it, please give us, The Stefani’s a call at 760-406-1047 or email us at SandL@StefaniRealty.com. To read more information on the real estate market in the Coachella Valley, please visit our website at www.StefaniRealty.com.