California Median Home Prices Plunges 34%

Based from MDA DataQuick, California median home price is now pegged at $278,000 from the $424,000 of last year. The plummeting of the median home prices was due to depreciation and the diversion of buyers to foreclosed homes. Foreclosed home sales account to 53 percent of pre-owned homes sales.

Even with the government and mortgage firms’ help, inland debtors from Stockton, Merced, Riverside, San Bernardino and Modesto are still troubled from the foreclosure of their homes.

According to John Walsh, president of MDA DataQuick, the housing economy depends on the changes in the economy, the job availability for possible homebuyers and the determination in reducing foreclosures.

California home sales increased as much as 64 percent within a year to 42,239, with 5 percent increase from September. October 2008 has been the strongest sales according to DataQuick.

In the San Francisco Bay Area particularly Contra Costa, Napa and Solano, home sales increased by 39 percent (7,613) in October and around 5 percent in September. Of these sales, 45 percent of the pre-owned homes sales were foreclosure.

Sales in San Francisco County decreased by 21 percent while median home price dropped by 41 percent to $375,000 in October from the $631,000 of last year.

The most significant price drop was seen in Contra Costa County where median home price plummeted by 46 percent to $285,000 from last year. But sales increased up to 87 percent

Another area in Southern California had an increase in sales of 67 percent accompanied by the 33 percent decrease to $300,000 in median home prices. 51 percent of these sales were once again foreclosure.

With home prices dropping, most home buyers and investors will be looking forward to buying real estate properties at bargain prices. Such favorable market conditions will surely make the purchase of a home much more appealing and not to mention, profitable.