California Real Estate Market Update Spring 2017
Right now in California prices have been going up and up while inventory has remained low. This combination along with low interest rates and a few other factors have caused the California Real Estate Market to be very hot. The California Association of Realtors has estimated the median home value to appreciate almost $24,000 in 2017 overall. This means that most homes will go up in value if they're correct.
While inventory is low in Northern California, buyers are still competing for the scarce homes that are available. In Southern California there's not much different. The LA Times has put out a story that says some are even bidding $100,000 over the listing price, and it's happening in places like Vallejo California as well. Vallejo was named the #1 hottest real estate market in the USA several months over the past year and half, while San Francisco and some nearby cities have been in the top spots as well.
Vallejo is located just about 20 minutes from Napa, 30 minutes from Sonoma, 35 minutes from San Francisco, and is right in the middle of Silicon Valley, Wine Country, San Francisco and Sacramento. Nearby cities for the most part are at peak high prices, while Vallejo and Fairfield (in Solano County, just next to Napa/Sonoma/Marin/Contra Costa) are nearing their previous peak values. One home (376 Pepper in Vallejo) sold about 18 months ago for $2450,000 and is closing escrow this week for $350,000 with no upgrades done to it at all. Values from 2003-2006 were going up about $6,000 a month for many homes, and now again they're just about the same in many cases, or very close.
There are no guarantees on what the future holds for California's real estate values, but it makes sense if someone can purchase rather than rent that would likely be a wise move. It is not always easy for buyers to save for the down payment, but there are many loan programs available to help. First time buyers and those moving up are often times joining together with friends or family to purchase so that can stop paying rent. Some buyers are working together with friends renting out portions of their homes to help supplement mortgage payments, and these types of moves are pretty smart since rents have been going up and up a lot in recent years as well.
Commercial real estate in California also has see increases in values and investors are scooping up multi-family homes plus other investment properties. Retail buildings, residential lots, commercial lots, land, acreage, industrial, apartment buildings and most commercial property values have seen increases in prices while inventory is scarce just like the housing market.
Whether you are looking to sell or buy, it's a wise strategy to get together with a Real Estate Broker / Agent / Realtor, especially one with an MBA and many years experience (such as Scott Brown of EXP Realty, 707-474-8855). A dedicated Realtor loyal to you and your best interests can go over all of your options and help you find your perfect home and negotiate the best deal for you as well as sell your home for top dollar with the best marketing plan.
Scott Brown grew up in and has lived in the Real Estate Broker Associate & Realtor (aka Real Estate Agent) with the fastest growing Real Estate Company, EXP Realty. After being a California Building ....