Article Summary:

Article Content:

Photo from flickr by forstonsr

An article on CNN today titled “Signs of Life in California Real Estate” was positive overall, though they’ve learned from the past to hedge their bets when it comes to predictions. In short, the article was pointing to first time buyers coming into the market, lured by low prices, along with investors lured by returns (19% was the return for one investor in the article buying a townhome in Sacramento).

The Good:

Low prices have brought out droves of buyers. In February, they purchased more than 600,000 homes, some 80% more than they bought in February 2007, according to CAR. And most of this activity is where prices are off 40% to 60% from their peaks.

The Bad:

Most analysts foresee continued price declines in California, according to Nicholas Retsinas, director of Harvard’s Joint Center for Housing Studies. “But [there'll be] a slowing of that decline, which portends the end of price drops.”