FHA low down payment buyers and cash investors dominate Southern California housing market – Not a healthy market when over 63 percent of sales come from these two groups. Move up sellers unable to shift because of negative equity.

"Last month was a record month for absentee buyers. Over 26 percent of all homes purchased in California last month came from this group. To play more to the point that these people are not scooping up $750,000 homes in prime areas the median price paid by these investors was $198,000. In other words they are scooping these places up for lower priced investments. Speaking to many people including active investors they are planning on using these homes as cash flow investments. More to the point, 31.7 percent of all buyers last month paid all cash for SoCal home purchases. Southern California housing is seeing a continuing trend of investors buying up lower priced homes"