Light at the End of the Tunnel

There is light at the end of the tunnel! At least for home sales in California. In the month of February, home sales were up 9% from a year ago and up 5% from January 2012. The uptick in sales can be traced back to cash buyers and investors, not owner-occupants. REO (Real Estate Owned) re-sales made up an estimated 34% of all the 4th Quarter 2011 sales, this is down from 38% a year ago. So folks, we are making progress, even if it is slow.

However, notable was the drop in home-ownership among those ages 35 and under. The younger generation is more cautious; they are waiting until their 30’s or later to get married and have kids.  They do not see owning a home as a symbol of the American Dream. Many will delay (or avoid) the large debt required to make a home purchase.

Beware of Pranksters on Sunday, April 1st.

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