The struggle in buying a home in California is real especially now because buying homes in California has become very competitive due to inventory shortages. Since the competition has grown it’s easier to sell. Properties are selling like hot cakes. However, this shouldn’t intimidate you into buying a house in this beautiful state and here is why.
The president of Local Market Monitor, Ingo Winzer, stated, “… at Local Market Monitor we’re forecasting that prices in all California markets will rise over the next three years.” This means the costs of properties are only going to go higher. There is a continuous fluctuation that has been analyzed where prices rise and drop each year which concludes this fluctuation will increase each year. So, if you have enough money to buy a property in California, now is the time to do it!
Sure, California is expensive, but it also depends in the areas you’re looking. For example, if you’re looking towards the LA and Bay area then yes, it is going to be expensive. The LA and Bay area have already gone above the 15 percent threshold for over-pricing when compared to an average home price along with the income price (Winzer, 2018). These aren’t the only cities that have sky rocketed. There’s 5 out of 15 cities in California where home prices are sky rocketing; there’s Glendale, Irvine, San Jose, Sunnyvale, and Fremont. In San Jose, the median list prices increased 23 percent,. That’s about a $184,000 dollar increase (Elkins, 2018). However, there are places that are affordable such as Palmdale, Lancaster, & San Bernardino. These may not be the most attractive places to look at but as mentioned earlier, the market is hot. Available land has become expensive and competitive since there’s not much land or properties to buy.
We have seen many cons when it comes to buying in California such as high costs, scarcity, and complexity. However, there are many pros when buying in California as well. When you buy land in California you have complete control over what you put in. Also, a new renovated home won’t convey health hazards such as mold or asbestos. The resale value in California is good too. New homes usually hold a greater value, make a better impression, and usually come with a warranty (Grijalva, 2017). However, for an older home this can vary depending on the cost of maintenance and remodeling. And lastly, there’s the emotional satisfaction of buying or building your own home in the sunny state of California.
Therefore, to answer the given questions, should I sell in California? Yes, because it will be successful due to the scarcity of available properties. Should I buy in California? The answer is also yes, because now is the time to buy. There’s more competition meaning people are willing to pay more. So if you don’t act fast, the price of the house you hope drops might go higher and you might lose your opportunity to get it.