As reported in the San Francisco Chronicle by Associated Press writer Alex Veiga, California home sales saw a 65 percent increase in September as a result of the mass amount of foreclosures that have taken place. Property seekers have been said to purchase homes at discounted rates to take advantage of the bargain hunting opportunities the current economic state has presented for those in position to make home purchases.
The average reported home price has gone from $400,000 to $238,000 over the course of a year. More than 40,000 homes were listed as sold during the past month. Resold foreclosed homes accounted for an estimated 51 percent of the sales.
Analysts are unsure whether the home buying trend will continue throughout the coming months. Many predict that fears related to issues with unemployment, limited credit, and other proponents of the economic crisis will cause some buyers to refrain from making purchases. Even for those with good credit and a sufficient down payment, recent events may prolong these fears and cause them to second guess taking any financial risks.