Sellers are beginning to relent and accept the “new normal” of the market place.  I spoke with someone who just sold a house in San Jose for $250,000 less than it was worth two years ago, finally accepting that new reality on pricing.  Investors, and people with cash, who were sitting on the sidelines are also beginning to participate at a high level  – 26% of buyers nationwide were cash buyers in January. In January in Las Vegas, 50% of the sales were made to cash buyers, in Phoenix 40% were cash buyers. 
 
4.5% of the houses sold in San Diego were owned for six months or less indicating that investors are participating in that market by flipping houses.  These are positive indicators in the real estate market – these sales are consuming inventory, creating further demand in the market place and stabilizing it by removing homes from existing inventory.  Cheaper inventory, and government incentives to first time buyers, low interest rates are all helping the market along. Having said that, our unemployment rate needs to improve to have a sustained recovery.  Our speaker in the East Bay & South Bay this week, Economist Robert Campbell, will further that discussion and share his very interesting perspective on Wednesday and Thursday evening.  Please register early as this meeting always sells out. Members attend free, just register online to secure your spot.