LOS ANGELES " Investors and first-time buyers, often bidding against each other for foreclosed properties, continue to propel home sales in the West, according to two reports released Wednesday.
In the 13-state region, sales of existing homes posted an annual increase of 16 percent last month. Nationally, sales rose slightly from March to April, but were roughly 5 percent below year-ago levels, the National Association of Realtors reported.
The reason sales are so strong in the West is simple: foreclosures and distressed sales have lowered the median price almost 22 percent to $222,600 from last year. That's the biggest drop in any region.
"We are seeting multiple offers on foreclosures in Carson City and Dayton," said Charity Hart, with Realty Executives in Carson City. "Some sellers are getting more than the asking price. Things are looking better here, no doubt about it."
Hart said that banks have been pricing their foreclosure properties at about 10 percent under market value, but that with the inventory clearing out, that may change.
"Now it seems they can list them at market value and they still sell," Hart said.
The worst-hit Western cities include Las Vegas, Phoenix, San Francisco and Los Angeles, where prices were down more than 35 percent, according to the Associated Press-Re/Max Monthly Housing Report also released Wednesday.
A lot of investors are swooping in with cash offers, says Ben Coleman, broker-owner of Century 21 Hartford Properties in San Francisco. About half of his buyers are investors and the other half are first-time home buyers.