Last year, San Diego County's numbers pretty much reflect the number of home sales up about 10%, but the prices down about 15%. Foreclosures and short sales made up about half of the sales last year.

Nationwide, home sales in 25 metro areas increased 1.5 percent nationwide in November compared with the previous month, and 46.7 percent compared with November 2008, according to a report by Radar Logic Inc.  Prices decreased 4.2 percent across all metro areas surveyed; however, eight areas experienced year-over-year price increases.  Half of the areas with year-over-year price increases were in California, according to the report.  Radar Logic’s Residential Property Index (RPX), which measures changes in the price per square foot of homes, shows that transactions increased in 9 of the 11 months ending in November.

"Affordability measures are at their highest levels in years and home sales are moving toward normal levels. Nationwide, foreclosure sales have declined from 29 percent of total sales in November 2008 to 23 percent of sales in November 2009," said Michael Feder, president and CEO of Radar Logic.

For at least the next year, the FHA has eliminated the 90-day anti-flipping rule.  Except in REO properties, the rule prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  Beginning February 1st, buyers may use FHA-insured financing to purchase properties resold through pivate investors or developers.  Now FHA buyers will have a wider array of homes to choose from, especially foreclosure properties.

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases.  Additional documentation may include a second appraisal and a property inspection ordered by the lender.

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