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.