California Saw Hints of Revival in Housing Market

California homes were on the market an average 6.7 months in January, compared with 16.6 months in January 2008, the Realtors association said. Nationwide, it was 9.6 months. In Tracy, a city of about 80,000 people next to Mountain House, there are 900 homes for sale, down from 1,800 a year ago, said Tracy Mayor Brent Ives. Few economists say California's housing debacle is over, and things could even get much worse. The state's unemployment rate of 10.5% in February is likely to rise, they say. So are foreclosures, which rose 5% in February from the month before, according to industry researcher RealtyTrac Inc. The median home price in California fell 57% to $254,350 in January from $594,530 in May 2007, and prices continue to drop in many places. There is another potential time bomb: What happens when banks put on sale the thousands of homes they have repossessed, but kept off the market? Prices have declined more since then, but buyers aren't waiting around for further discounts. A year ago, most sales were well below asking price. Now, many are close to asking. Broker Leo Apostol says he is representing buyers of two four-bedroom homes, both in escrow for more than the asking price: One is listed at $305,000 and drew four offers; another is listed at $294,950 and drew two offers. "When you have multiple offers, that usually means prices will go up" eventually, he said.