Tuesday, April 7, 2009
Recovery USA – where California leads, the rest will follow
The vast flatlands sprawling east of Los Angeles, consisting of roughly 3 million people, have suffered one of the highest rates of foreclosures and surges in unemployment in the nation. Yet now sales are picking up and inventories are finally beginning to drop. Even developers of new properties report a strong uptick in sales. In new developments in the Inland Empire, Brookfield Homes reports sales volumes up 150% since six months ago. Although the economy is still hurting, the housing trend has become much more positive. Statewide, existing home sales have jumped 30% over the past year, taking the inventory from an estimated 16.7 months to less than seven months. Most encouraging, this activity is taking place exactly where the market was hit hardest in the beginning - low-end suburbs.