Homes sales in an area of one US state are again on the rise after sellers started offering big discounts to tempt property investment buyers.
Research from property information firm DataQuick shows transactions in southern California soared in October, with the median sale price dropping to $300,000 – the lowest it has been in over five years.
DataQuick said more than 21,500 new homes and re-sales went through a deal in a six-county region in the south of the state.
This is five per cent more than the September figures and is a massive 66.7 per cent higher than the transaction rate for October 2007.
John Walsh DataQuick president, said the figures were surprising given “dire” financial headlines in recent weeks.
He said:
“It tells us there were a lot of very serious buyers in the market during late summer and early fall – buyers who consider housing a relatively good buy or investment.
“Whether the worst of the housing correction is behind us will depend largely on the depths of this economic downturn, especially with regard to job losses.”
Many of the Californian discounts on offer were as a result of the ongoing foreclosed homes phenomenon, DataQuick added.
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