Buy Foreclosed Properties for Sale in Southern California

People can buy repossessed properties for sale in Southern California and make profits when home prices return to their normal levels. Prices for homes and condo units continue to fall in most areas of the region.

Based on data from a San Diego-based real estate research firm, house and condo prices in Southern California in September dropped by 11 percent compared to September last year because of the continued domination of foreclosure sales in the market.

The median home sales price has fallen from $308,500 in September 2008 to $275,000 last September. Because of substantial price declines, home sales increased to 21,539 units, marking an increase of more than 5 percent compared to sales in September last year.

Out of all house sales in September in the Southern California counties of Los Angeles, San Diego, Riverside, Orange and San Bernardino, 40 percent were foreclosure sales that involved single-family homes and condo units. Although the 40-percent share is down from the 42-percent share in August and the peak 57-percent share in February, the September share was still substantial.

Analysts said that the increase in home sales compared to the previous month of August was atypical because September house sales historically were lower than August sales. The September sales also marked the 15th consecutive time year-over year home sales increased.

They also said that the scheduled expiration of the federal $8,000 tax credit next month enticed more people to buy repossessed properties for sale and other types of homes while prices are still low and various federal and state incentives are still available.

Out of all the 6 counties of Southern California, the median home sales price increased only in Orange County. The median price rose in Orange to $429,000, an increase of nearly 1 percent. The biggest price decrease occurred in San Bernardino, where the median sales price fell to $150,000, marking a decrease of 27 percent.

Compared to sales in September last year, home sales in 4 counties increased while sales in Riverside dropped by more than 5 percent and sales in Ventura dropped by 3 percent. Home sales increased by 14 percent in Los Angeles, marking the highest rise among the 6 counties.

According to housing analysts, investors and families who are able to hold their real estate investments for several years can buy foreclosed properties for sale in Southern California and then resell them when prices are profitable again to sellers.

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