According to the newest sales report by California Association of Realtors, the number of home sold this July increased 43.3% comparing to July 2007.

While sales volume increased, the median price of an existing single-family detached home in California dropped 40.3% from $587,560 for July 2007 to $350,760 for July 2008.

Why are we seeing an increase in sales but decrease in price?

According to C.A.R. President William E. Brown, "Deep-discounted, distressed sales continue to drive volume in many regions of the state."

Since lenders are dumping foreclosed properties back to the market at a huge 10% to 30% discount, we are seeing large sales volume with substantially lower price than last year.

Due to the huge price drop this year, it creates a great opportunity for home buyers to secure excellent bargains at deep discounted prices.