According to a report released today by the California Association of Realtors,  home sales in California actually increased in April reversing a 30 month decline in sales numbers. According to the report, home sales statewide rose 2.5% above April 2007 led by areas that have taken some of the biggest hits like Sacramento and Riverside County. As pointed out in my latest local market update, Southwest California (Southwest Riverside County) sales were up nearly 45% on average over a year ago. That's the good news.

The flip side is that prices were down statewide by 32%. Our median home price dropped from $594,110 in April 2007 to $403,870 this year. That's a drop of over $190,000! That drop alone would buy you a nice house in most areas of the country. Locally our prices dropped 34% or about $164,000 on average from $478,819 last year to $314,548 last month. 

The increase is being driven by bargain hunters jumping back into the market taking advantage of lower prices, a continued glut of inventory, especially bank-owned inventory, on the market and continued favorable interest rates. First time buyers are especially impacted as affordability rates jumped nearly 18% statewide putting us back to pre-2003 levels. Homes priced under $500,000 accounted for 64% of April sales compared to  40% a year ago while homes from $500,000 to $1 million dropped from 45% of sales last year to just 26% this year. 

The tide is turning. It's starting. You've still got maybe a 6 month window before rising interest rates cancel out the benefit of falling prices and foreclosures start to taper off. If you don't take advantage of the market soon, you'll miss that turn and you'll be sitting back cussing yourself again waiting for the next cycle. Don't say I didn't warn you.

To read the full story, please click here:  http://www.bloomberg.com/apps/news?pid=20601087&sid=aKzbMH2M1azY&refer=home

Gene Wunderlich - Selling Southwest California Homes including Temecula, Murrieta & The Southern California Wine Country

Remember, Don't wait to buy real estate - Buy real estate and wait.