California has long been viewed as the state that delivers on dreams. The Golden State has once again proved itself worthy of that view, as both new and existing home sales reach new highs in the most recent report. New and resale housing markets have pushed higher than they have in years.
Six Continuous Months of Increases for Resales
July of 2015 saw sales of existing homes soar to the highest point they’ve been in the past three years. Each month, for the last six months in a row, year-to-year figures for resale market sales have topped reported figures for previous years.
In a new report from the California Association of Realtors, the year-to-year increase for July was the greatest seen since July of 2009, and notably more than the increase recorded for the six-month period from January, 2015 to June, 2015, which delivered an average of six percent.
These stats follow on the heels of the June, 2015, report, which saw existing homes in the US increase monthly sales by 5.1% from April to May.
New Housing Starts Best Since 2007
Meanwhile, new homes have reached an eight-year high, with the highest level of building activity since before the last housing bust. Housing starts have been riding an upward trajectory, and have powered up to an annual rate of 1.21 million; a level not seen since October of 2007.
Cash is King
Cash is still a big player in California home purchases. 28% of homes sold in California this past May were purchased via cash sales. Nationally, cash purchases accounted for almost 32% of all home sales in the same time period. Cash purchases accounted for over 45% of Nationwide deals in 2011. Even though that percentage has dropped over the years, it’s clear that cash investors continue to expect great returns in real estate for some time.
Is it time for you to get in the market? Selling or buying, give us a call.
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