California Home Prices Drop 41%, Sales Up

The California Association of Realtors reported yesterday that home values fell 41% from February of 2007 to February of 2008. During this time period, the median price of a single-family detached home fell from $418,260 to $247,590.

The 41% collapse is more than twice the national average of 16%. California was particularly hard hit due to the number of foreclosure sales, which push down property values.

What This Means For You

If you didn’t know it already, your home value dropped last year. The national decline was the second highest decline on record. If you own in California, then you were harder hit.

The good news is that home sales are up. First time home buyers and investors have come back into the market to snap up depressed properties. As the glut of foreclosed homes on the market is reduced, prices will eventually stabilize.

Hopefully, we are near the bottom.