Sunny Southern California : In March, Home Prices Jump...

According to the Associated Press, prices for more expensive homes went up in March by around 14 % , compared to the same time last year. This is perhaps a sign that people are starting to feel a more comfortable about letting their cash go, especially the upper class.

According to a MDA Data Quick summary, home prices in the area have gone up roughly $35,000 since this time last year. Also, since February, the values have gone up approximately $10,000.

This is an interesting trend. Something has caused the focus of the real estate market to zone in on higher priced properties rather than focus on the cheaper, middle class homes.

That being said, the total number of foreclosures sold actually dropped to 38%, which is a sharp decrease from the 55 % it sat at around a year from now.

This is no doubt a good sign that although things are not completely back to normal, the upward sales of these homes, and the value at which they are gaining, shows that the market is continuously moving forward. The average of home sales in March, are still significantly lower than average, however.

With almost 2 years of sales gains, and being that there is still around an 18 percent below average number being sold, points to just how bad the economic downturn really was. Especially the real estate market.

Things could be a lot better. If banks would actually loosen the tight reigns they have on their capital, we could possibly see a significant growth in the number of home sales. Obviously, the act of lending is nowhere near normal levels.

Do you think this is a good or bad sign? Will these trends continue or move backwards in the coming months?



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