According to the California Association of Realtors, 2017 will be a positive year for the inland markets in the state. Inland residential real estate markets are expected to thrive because homes along the state’s coast are becoming less affordable. The number of houses sold is expected to increase between 2016 and 2017.
The Central Valley and Inland Empire, which are relatively affordable, should see more activity. Parts of the reason for this are job creation and low interest rates. In addition, mortgages that only require low down payments are available, thus increasing people’s chances of being able to buy homes, particularly first-time homebuyers.
Since the year 2014, when real estate sales and foreclosures went back to historic levels, prices have been on a steady incline. However, inventory has been tight due to construction lags and also because homeowners are choosing to remain in their houses longer. Rather than buying their dream homes, they are more focused on remodeling their current houses to make them into their dream homes, as this path is more affordable. Sales were essentially flat between 2015 and 2016, although median prices increased by more than 6 percent during this time period. In the year 2017, there is expected to be a more than 4 percent increase in prices throughout the state, which is good news for home sellers.
Economists said that increasing prices in Los Angeles, as well as San Francisco and San Diego, might slow sales there, although higher prices are good for sellers when they do sell. However, as California continues to attract would-be homebuyers, there appears to be great promise across California’s residential real estate markets for both buyers and sellers. Proper legal guidance may help people to successfully purchase or sell their residential real estate properties in manners that meet their goals and expectations in the Golden State.
Source: desertsun.com, “California real estate predictions: Coastal markets slowing, Boomers not selling“, Rosalie Murphy, Sept. 29, 2016