California has always been one of the places where it is most likely and most attractive to own vacation houses. When the housing downturn took its toll, it did not surprise anyone that the state has been among the hardest hit. As the unemployment rate continues to rise to record levels, more households fall to default on their mortgages. The result, there are thousands of California foreclosure homes available for sale in the market.



Data released by real estate tracking firm RealtyTrac for October 2008 show that while the volume of California foreclosure homes fell 18% from September, it rose 13% compared to volume in October 2007. There were a total of 56,954 homes that were foreclosed in the month. That is lower than the record of about 100,000 foreclosed homes in the state in August 2008. Clearly, there will be more than enough California foreclosure homes available to prospective homebuyers and home investors in the coming months.

California ranked at No. 4 in the list of states with the highest foreclosure activities in October 2008. The state remains on top of the list of practical buyers, who always aim to acquire assets at very low and reasonable prices. While during the peak of the housing industry years ago, California was among the most expensive states to buy dwellings, these days, the trend is reversed. Average home prices, for new and foreclosed homes combined, in the state have fallen up to 40%. Foreclosed home price tags are logically cheaper and more practical these days.

Thus, thousands of homebuyers flock to the state to bid for and snap up available California foreclosure homes. Now is certainly the best time to buy such dwellings before the inventory shrinks and prices normalize.