California is a one-of-a-kind place that truly conceptualizes the American dream. A place where folks come to try their luck, make their fortunes, become somebody in the process, said Ali Safavi. It has incredible resources, breathtaking beauty, and an ever-endemic Hollywood appeal. California, more than New York proves that old Sinatra saying, “if you can make it here, you can make it anywhere.” It is a perfect place to settle down, to invest, or simply feel as if you’re part of a selective clique. A thriving ecosystem that joins a natural jaw-dropping landscape, the multiculturalism melting bot that is humanity at its best, and an attractive business-minded community. These plus dozens of other reasons are why California real estate is in such high demand, and also why it is a complex place to trade in, buy and sell. My name is —- and I’m going to give you some key insight to understand the California Real Estate Market.
Tips for understanding California’s real estate market and its comparative prices.
All markets are different, each has its peculiarities and distinctive features. To successfully navigate them you have to understand that each and everyone works on its logic. According to Ali Safavi there might be some overlap, but each is special. Whether you want a property, want to sell one, or are thinking of becoming a realtor and getting into the game you need to understand the characteristics that govern the market you’re dipping your toes in. To truly grasp the force that drives supply and demands, and by correlation the prices you will turn into. When you manage to understand and incorporate those factors only then can you dive in and try to swim in its waters.
Square footage price
As a quick reference, the average median price in California is just over $300. That’s for square feet. Do you want to know what the National median is? $140. California, at a starting point, without factoring in neighborhoods, demographics, school districts, and other singular aspects of a property are one of the most expensive places to buy real estate in. Only one State is more pricey— Hawaii, and that’s only because it is a small island state where land is running out.
Five of the top ten
There’s a reason why prices are so high. List after list continually names 5 cities in California as the best to live in.
Great investment
California, unlike other markets, has one thing that has always worked for it. Prices are always rising. When you invest in California real estate you’re knowingly funding something which over time doubles in its value. When you invest in California you’re funding something that will always give you a profit should you decide to sell.
Demographics
The price of properties in the area is partly tied to that area’s population. Their age, their income, migration, skills, etc. Right now there is a huge number of baby boomers in California, a population group that according to experts is poised to change the market in the coming years. Why? Because as people age they start to want to evolve into better homes, other regions, more accommodating less demanding lifestyles.
Startups
Aside from boomers, millennials have sort of taken the state by storm. Over the years there’s been a huge influx of millennials drawn in by the many tech jobs that the state has to offer. Millennials have certain priorities, which the State, in its power-hungry grab for taxpayers, is more than happy to accommodate. What type of priorities? Easy access to transport hubs, quality community services, and locations, health food stores, coffee shops, premium restaurants, around the clock safety and security. These demands, which are rapidly answered by the State, instantly refurbish areas and make them sparkle — which in turn re-assess, upwards, a property’s price.
Days in the market
Another key component that is pivotal in why California real-estate is such a hot ticket item at the present, and why it continues to grow in value as the years go by is the fact that most properties are snatched right up once they are listed. The statewide average for a home or property to be on the market is 54 days, and main city hubs or regions with booming economies, like Los Angeles, San Diego, Malibu, etc beat that number. By how much? Most properties only stay listed, and on the market, for 2 weeks.
In general, this means that there are fewer properties on the street and that it is a seller’s market. This tends to drive up the prices. This is a great quality for people looking to invest that in turn want an asset that can get a quick profit and turn into cash — one with fast turn-around and great liquidity.
Unemployment
In many places, Real estate tends to go hand-in-hand with employment stats’. Where there’s a huge market, and a booming economy, and as a consequence of both plenty of employment opportunities, the real estate market has a huge spike.
In the most central parts of California, the booming tech industry, not to mention the already established entertainment business, means that folks will always have great jobs available. Right now, both of those industries are at an all-time high — and they are not insular, they need services to satisfy their staff. That means that other businesses are thriving on account of them.
Infrastructure
As per Ali Safavi it’s important to know where the housing market is going to go next within the state. It’s important to look at infrastructure development and invest where the state and personal business are developing it. This includes where new schools are being built, where highways are being updated, where there are new transportation hubs, in other words where the community is growing. Development is liable to make the area more attractive and as it evolves it keep the tax base low.
