California is one of the states that a lot of people want to live in. This is mainly because of its diverse weather and culture. Unlike the East Coast, where you get massive snowstorm and experience extreme heat in Texas, California, the weather is very comfortable and diverse. In addition, you get access to celebrities, beautiful views, and a variety of cultures and cuisines. Because of it desirability, real estate prices are often very high. Selling a California home in today’s real estate market can be very unpredictable. Fortunately, we have some amazing forecast so you can have a bigger picture of what’s going on there.

Will California Fightback

California has the smallest decline in the past 13 months when it comes to selling houses. According to CAR, the sales have risen up to about 4.6%, which means we are looking at around 749K price range. The home prices have increased to about $611,000. This is approximately $245,000 higher than the selling price that was listed ten years ago. In addition, condos in California have bounced back to around $470,000. There has been an increased growth of active listing in the past years. Plus, there are also a lot of buyers, so that means whoever is interested in selling their house will most likely get their homes sold.

Utilizing Multiple Listing Service

Because of the advancement of technology and platform, it has been a phenomenal year for the California real estate market. A lot of people are utilizing California MLS to get their homes sold at a reasonable price. Because of this, a lot of people are able to profit and get the amount that they want. Not only that, people who are interested in buying a home can find what they are looking for through the MLS system.

Rising Rent and Crazy Rental Condition

Even though California has lower mortgage rates as well as fix home price, but Zillow still forecasts that the rental price will continue to rise. Because of the extremely high real estate prices, a lot of interested buyers are not able to come up with the proper down payment or manage such a high mortgage payment plan. However, homes that are in the middle range price during the month of May have more success in selling, which indicates that millennials can still buy but at a more reasonable price. Because wages are rising and there are more employment opportunities in California, people are ready to buy homes only if they are at an affordable price. The problem with buying a home in California is that there is a lack of available homes and apartments as well as extremely high prices, which makes it a very challenging market.

An Economic Overview of the Real Estate Market in California

The economy in California is expected to decrease slightly in the year 2020 but will experience an upward trend towards 2021. Since the mortgage rates will continue to decline, it makes buying a home sound more reasonable. However, luxury homes are sitting on the market longer than houses at a lower price. In the past 12 months, the California economy has grown up to 4.7% in comparison to the national rate of 2.8%. Experts have postulated that it will continue to grow at 2.55% pace in the next six months, which is 1.59 times higher than the national rate. It’s the idea that the interest rate is no longer an issue, and the US economy is expected to grow that the real estate market has predicted to have a bright future.

California Housing Market Growth

There is no doubt that there will be an expected growth in the real estate industry in California. The main reason for that is due to stable interest rates, tax drops, stable price, rising wages, reasonable mortgage, and increasing personal savings. In addition, there are also other positive outlooks in the California real estate market is that there are a lot of baby boomers selling their house, and millennials buying it. Another thing is that taxes are getting better as the years go by along with increasing employment rates. With all this in mind, the housing market is expected to experience phenomenal growth as the years go by.

No one has a crystal ball to truly tell us the situation with the California real estate market. However, we do have data and numbers from past experience as well as real estate and economic experts to provide us with details on the expected outcome of the selling market for California real estate. So far, the results look very promising, and the real estate market is expected to be very profitable in the near future. That means it’s a good idea to start posting your home at a multiple listing service and watch buyer flock in to view your place.

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