Good Morning Breakfast Lovers!

While they are about as much fun as dental surgery, at least Buyers are coming back.

As properties in the area have become more affordable, buyers are lapping up homes at an astounding rate. The number of listings has dropped across the board; down about 40% from last year, while maintaining a consistant ratio of 40% distressed properties. Pending sales are up about 66%, helping to further reduce inventory.

This is helping to firm prices a bit.

Other good news is that the "Delta Breeze" is beginning to return. This is a euphamism for buyers coming from the more-expensive Bay Area. The Breeze was strong during the boom of 2003-05, but had dropped to nearly zero for the past couple years. Now, we are returning to about about 25% of buyers from out-of-town.

The housing market is perfect for foreign investors looking for an opportunity to see appreciation in both the Dollar and local real estate prices. Purchase of residential income property, or even single-family properties would be a spectacular investment. Rents are moving higher as more families are forced from their homes. I spoke with a short-sale seller yesterday looking for home to rent, and he told me the minimum rent is about $1,800/month for a $300,000 home.

J.Scott Carpenter, Carpenter Properties, Rocklin, CA