In recent years, California real estate has increased significantly in price. Thus, people owning a house or condo in or around View Park, CA have gained a lot of wealth. Many are now wondering whether these favorable conditions will last or whether it’s time to sell their home or buy-to-let property and buy something cheaper in a different area. Similarly, potential buyers are considering whether prices will level off or continue to rise in 2022.
Many experts agree that the rate of market growth is unsustainable, since middle-income families are being pushed out of the LA area. For this reason, it is possible that the market will level off. However, California will remain a highly sought-after location for the foreseeable future, so a crash or a drop in prices seems unlikely. Let’s have a closer look at how the property market could develop in the next year and whether now is a good time to buy or sell.
How Long Will the California Real Estate Remain a Seller’s Market?
At the moment, real estate all over California is extremely sought-after, and there are more home buyers than houses available. This means that we are in a seller’s market. Not only can you get a great price for your house or condo, but you can also sell it within a few days or weeks. Many people find that they receive multiple offers within one or two weeks of their listing going live.
It is unlikely that this will reverse very soon because people are still moving to California from all over the country and the world due to the highly paid jobs and the excellent quality of life. For this reason, the current housing shortage isn’t going to be resolved in the next few years. However, prices may level off, so the cost of buying a new home won’t keep rising exponentially.
Should You Sell Your View Park, CA Home Now?
Because there has been an enormous increase in house prices in recent years, LA properties are now more valuable than ever. If you’ve been thinking about selling your primary residence and moving to a different area or reducing your buy-to-let holdings, now might be the time to make your move. You have almost certainly made a profit on your property, and experts predict that prices won’t keep increasing as sharply as in the past few years.
Getting a good price for your home and selling it quickly shouldn’t be hard because there are so many buyers ready to snap it up. Despite this, you should get in touch with a competent real estate agent who can help you make the most of your sale. Creating an attractive listing and presenting your house favorably can increase the price by a few percentage points.
Should You Buy a New Property Now?
Is it ever a good idea to buy during a seller’s market, or should you wait until conditions are more favorable for buyers? Unfortunately, there is no simple solution for the housing shortage in the area, so it is unlikely that California real estate will experience a buyer’s market in the next few years. If you decide to wait, your View Park, CA real estate purchase might be delayed by five or more years.
The good news is that a market crash is extremely unlikely since there will always be people happy to buy your home at a good price. Thus, a house or condo is a good investment. By speaking to a local real estate agent, you can maximize the value you get for your money and find any hidden gems or fixer-uppers that are currently on the market.
Why Is the Housing Market Likely to Remain Hot?
As discussed, California seems stuck in a permanent seller’s market because of the great housing shortage. But why is this the case, and what is causing the imbalance? In essence, a supply and demand issue is behind the problem. This is compounded by the fact that living conditions are extremely favorable here, so people are moving to the area to increase their quality of life.
Supply and Demand Issues
Building a new property in California is difficult, since there are many restrictions, and it’s a challenge to get a plan approved. If you’re a developer and you’d like to build a new residential structure, you’re unlikely to choose this state because land is so expensive. You’d expect 12% of your total budget to be spent on purchasing the land, whereas the cost in other states is only 5% of the budget.
What’s more, the cost of labor and materials is much higher than in other areas of the US, a problem that has been compounding since the financial crisis of 2008. Because of the many obstacles, few new homes have been built. In recent years, the situation has improved slightly, but we can expect there to be an ongoing shortage.
People Will Continue to Move Here
Although the cost of living is high, people continue to move to California. There are several reasons for this. Maybe the most compelling is that the quality of life is extremely high in many cities and suburbs. Not only is the climate favorable, but you have all the necessary amenities, and there are a lot of free-time activities available. Surfing, fine dining, shopping, boating, hiking, and sightseeing are all possible in many areas of the state.
What’s more, the jobs in Los Angeles and San Francisco are often much higher paid than in other parts of the country. Many young professionals believe that they can build up a strong carer locally and that a move to California will lead to long-term career success. This is especially true for people working in the technology, tourism, and educational sectors.
How Can You Take Advantage of Current Market Conditions?
Whether you have a home to sell or you’re looking to buy a new property, you’re sure to find an opportunity and benefit from the hot market conditions. To maximize the return on your money, you should speak to a real estate agent. If you’re a seller, they can help you improve the appearance of your listing and property, so you will attract a great number of high-quality buyers.
If you’re a buyer, an agent can give you advice about which area to look in and where to find the best houses. By building up a relationship with them, you will be the first to know about any new properties on the market, so you have the best chance of your offer being accepted.
Is It Time to Sell?
It’s hard to predict exactly what will happen in the California real estate market because there are so many variables at play. However, experts agree that, while prices may level off in the near future, your house or condo is likely to remain extremely valuable because LA is such a sought-after area. With people moving here for jobs, the weather, and the great quality of life, you can expect your home to retain its value for many years to come.
Whether you’d like to buy a new place or sell your current property, the best way forward is to contact a highly experienced expert. They can help you choose the best time to start your search or put your listing on the market, so you can make the most of the current conditions. Call or message Teresa Mack today to find out how she could help you optimize your property investment.