Good news

According to the California Assn. of Realtors (CAR), existing home sales rose 63%in March compared to March of 2008. CAR's Unsold Inventory Index fell to 5 months supply compared to 12.2 months one year ago. New home sales were up 15% compared to the previous month. The new state tax housing credit of $10,000 combined with the $8,000 federal 1 time homebuyer tax credit appear to be driving the new home sales. Foreclosures and short sales continue to account for more than 50 %of existing home sales.
Buyers are still looking for bargains. They are buying the lowest price per sq. ft that they can find. The pressure is still on prices because most buyers know prices won't be going up any time soon, so they need to pay the least they can do.