The rising number of foreclosed homes in California is continuously rising. Another proof for this is the recent data released showing foreclosures in Southern California, where real estate industry is more active in the state, have significantly jumped from 16% in October 2007 to 51% in October 2008. This backs actual observations that homes listed at California foreclosure listings are rising robustly.

The increase of foreclosed homes listed in California foreclosure listings is more than enough explanation why the housing industry in the state region is further declining. Because foreclosures flood the California home market, the logical effect is that home values are further depressed. Thus, monthly median prices for sold homes in the area dropped to $300,000 in October. That is 41% lower compared to the peak price of homes in the area in 2007.

The trend is heralding tougher times ahead. The rise in number of units in California foreclosure listings could be attributed to several important factors, like a continuous economic slump, slowing consumer spending and growing unemployment rate. The crisis is expected to continue for some time. The housing market is finding it harder to see the light at the end of the current crisis tunnel.

This could be a good opportunity for homebuyers and home investors who aim to buy at lower prices. As foreclosures continue to drag down home values, price tags of houses, especially the foreclosed ones, are expected to dip some more. If you are aiming to buy homes at reasonable prices in California, it is high time you access any of the available California foreclosure listings.

Seize opportunities to buy at fair prices while supplies further rise and prices fall. Nobody knows when the housing downturn would reach its bottom. Meanwhile, enjoy your buying spree while it could last.