Home Sales Surge in California on Low Prices

Los Angeles, CA, Sept. 19, 2008--Home sales surged 13.6 percent in California in August as a flood of foreclosures drove down prices.

The figures released Thursday by MDA DataQuick showed 37,988 new and preowned homes were sold statewide last month, up 13.6 percent from August 2007 but down 3.8 percent from July.

The firm said 46.9 percent of all homes sold last month were foreclosed properties, most of which were located in inland regions that have taken the worst hits during the housing crisis.

"It's the counties that have these large pockets of distressed properties where prices have plummeted," MDA DataQuick spokesman Andrew LePage said.

"If it weren't for the big price drops in the inland markets, we wouldn't see a year-over-year gain" in sales, he said.

Rich Cosner, president of a Prudential California Realty office in inland Southern California, said prices could be bottoming out among the most modest properties, although expensive homes would likely see further price declines, he said.