According to the California Association of Realtors, existing home sales in May were up 18 percent from a year earlier. At the same time, my colleague Delores Conway is showing that the gap between house payments and rents is returning to its historical norm for Los Angeles.
But perhaps more interesting are anecdotes I heard at the Pacific Coast Builders Conference in San Francisco last week--buyers are going on REO "bus tours" and purchasing multiple homes--with their own money. It is not all all clear how widespread this phenomenon is, but if we see large numbers of vultures in a market using equity to sweep up REO properties and short sales, we have seen the bottom of the market.
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