Funny market we are in. Homes sales were up 27% in December to more than 500,000 in the State of California. There is just 5 months worth of homes in inventory versus 11 months a year ago, another good sign.
Thirty-year fixed-mortgage interest rates averaged 5.29% during December 2008, compared with 6.10% in December 2007, according to Freddie Mac. The time it took to sell a single-family home was 46.1 days in December 2008, compared with 66.7 days for the same period a year ago. Again another positive trend.
So what’s the one part of the equation not going in the right direction? Home prices. In California, according to the state association of Realtors, the median price fell nealry 42% in December to $281,100.