This year's homes sales data continues to reflect California's bull market for real estate. Existing home sales are up 6.8 percent over last year, a moderate gain that's refreshing, compared to the almost 3 percent drop in 2014 and the unsustainable increase of 9.2 percent in 2013. Median purchase price has risen 5.9 percent, another encouraging statistic, especially considering the 11.5 percent increase seen in 2013. California has also seen positive job growth and reduced unemployment, coupled with another year of positive growth in resident income. All this may sound like good news, but data is only relevant in context. Read on to learn what all this means to Southern California home buyers, home sellers and you!
Yorba Linda Home Buyers
In the Yorba Linda and Los Angeles metro areas, home values are actually down a bit, as compared to the rest of the state. Prices are projected to drop approximately 2 percent from last year; however, that trend is not expected to continue for long.
Without question, this is the strongest buyer's market the area is likely to see for a while. Although it is no longer at its lowest, you can still buy at a good value. Rents are especially high in this market, and throughout the region. This represents yet another reason for dipping your toes into the real estate market. Interest rates remain historically low, despite ongoing threats for a rate increase. Experts advise acting quickly to take advantage of this perfect storm of factors for buyers.
Southern California Home Sellers
In light of the slight dip in home values, inventory in the area is unusually low. In other words, sellers are waiting for the market to improve before putting their homes up for sale. Meanwhile, a large supply of buyers is wandering around, already approved for their home loans, looking for the perfect home.
Even though your home might fetch a slightly higher price next year, values may not appreciate significantly. If your financial basis allows, consider listing your house this year. Time on the market will be favorably brief, due to the low levels of inventory, and buyers may even engage in a bidding war for your home, helping to overcome the small decline in median value.
What This Means for You
Statistics are helpful for recognizing overall trends in the California real estate market, but they don't necessarily reflect your specific situation. Whether you are considering selling, buying or both, individual market factors may be in your favor. To better understand the market and what the smart move is for you and your family, sit down with a local Realtor®. The experience and intimate level of market knowledge a licensed agent in your area offers are invaluable for your financial well-being and your family's quality of life.
In Yorba Linda and the surrounding communities, the professionals of the Edie Israel Team are the local experts. Day after day, these experienced Realtors® work in the community, helping buyers and sellers negotiate the complex aspects of real estate transactions. Contact the Edie Israel team to learn more about how today's market affects your potential interests in home sales or purchases.