California Real Estate ~ Golden State homebuyers, sellers and lenders should take advantage of deals as they arise.
The good news is that, after the worse drop since 1938, the U.S. economy has been growing steadily since 2010. Job growth has been stable as well, although it did stall this past September. Even with the slow job growth, the unemployment rate has remained low.
Sparked by high consumer confidence, U.S. home sales rose about 6.1 percent over 2014. California real estate did even better, increasing by 9.3 percent. When the Fed raised rates slightly in December 2015, home sales are expected to slow to about 6 percent in 2016, according to the California Association of Realtors.
Influencing Factors
California real estate experts keep watch on issues that may affect home buying — and the overall economy — such as:
- Stock market changes
- The Presidential election
- Water shortages
- Energy prices
- Terrorism
- El Nino
- Slow growth in China
But bright spots may boost the California real estate market over these obstacles. Some of the influencing factors include:
- Baby boomers are retiring in droves. As they downsize their primary residences, they’re buying second homes and investment properties.
- Millennials are turning into first-time homebuyers or trading up if they already own a home.
- Investors who took advantage of foreclosures and record low housing prices will be ready to flip those properties.
- Mortgage rates likely will continue to remain low.
Expenses Remain High as Usual
California remains one of the most expensive places to live in the country, with Los Angeles at least 30 percent higher than the rest of the country. Northern California homes prices have leveled off, although throughout the Fresno, Oakland and San Francisco areas, homeowners have to pay an average of 25 percent more than their peers across the U.S.
First-time homebuyers in California consistently comprise about 29 percent of all homebuyers, in contrast to the 38 to 50 percent average nationwide. And the high cost of living continues to leave California with the lowest number of homeowners in the nation at 54 percent, compared to 64 percent nationally.
Grab the Deals in California Real Estate
The California real estate market is the most volatile in the country. So when you see a deal, don’t procrastinate. You can help yourself by becoming preapproved for a mortgage loan.
Realtors and mortgage lenders must provide exceptional customer service to attract and keep clients. If you aren’t satisfied with your lender, develop a relationship with a licensed professional like Prime Mortgage Lending and Zachery Adam. Independent mortgage lenders like Zack understand the shifts that come from the high winds blowing through the California real estate market.
Zack operates in Northern California from the mountains of Western North Carolina. It’s not such a stretch in this era of broadband. He’s maintained a number of professional partnerships in California, and he works hard to deliver the best customer service to all his clients, including homebuyers and Realtors. Contact Zack to discover how he can help you buy a Bay Area home.
