The recent National Real Estate developments in the housing market have reduced the new and existing home sales to record lows in California. In northern California and in the rural areas, real estate and home prices have been holding steady with a slight decline in sales. However, the most significant drop in new and existing home prices and sales are in the southern half of the state and in the urban areas such as San Diego, Los Angeles and San Francisco.
I see two to three year stagnation in the new home sales market for California. Many new home builders have a high inventory of unsold units which causes a significant drop in home values. This makes a buyers market with many bargains to choose from.
The existing home sales market is also affected by the high supply and low demand of new homes in the home builders inventory. The average homeowner would like top dollar for their property, however in today’s market this is most difficult. The high inventory of new homes makes a difficult situation for the homeowner that wishes to sell their property.
In California, the home and apartment rental market is on the upswing, with many new developments being under construction.
The future outlook for the California real estate market is bleak and may take several years to rebound. However, due to many valuable assets that attract home buyers from other states, such as weather and job opportunities, this continues to make California a good relocation destination.