Socal Home Sales Rise in April

Southern California homebuyers stopped looking and started buying again in April. Foreclosures and homes priced under $500,000 were clearly the best sellers, and reflected a 22% jump in sales over March. Even so, sales were off 19% compared to April 2007. The affordability index has changed dramatically due to lower prices and drops in interest rates. A year ago, $100,000 annual income was needed to qualify for a median priced home of $496,120. Inventory of homes for sale has declined significantly in certain price ranges and in certain cities. As an example, in Irvine there were 695 homes on the market in April priced under $800,000. Essentially that means there was only five months of homes for sale, which is described as a “neutral” market. More than six months of inventory is considered a “buyers” market.