What To Expect From California Home Prices In The Future
Are you planning on buying a home in California in 2020? The recent events that have overtaken the state may have you a bit worried. It is true that the wildfires and Covid-19 lockdown have taken a certain toll. However, this does not mean that your quest for real estate in California is doomed to meet with failure.
On the contrary, your list of what to expect will be filled with a great many advantages if you play your cards right. California's future home prices are expected to hold at a steady rate for many years to come. This means that if you know what to expect, you can easily count on getting a great bargain for your new home.
California Future Home Prices Are Holding Steady
Perhaps the most crucial thing to take away from this discussion is the fact that home prices in the state are holding steady. Despite all of the turmoil and upheaval that 2020 has brought, this is still the case. If you are planning to buy a new home in the state of California, you can still expect to do so for a reasonable price.
It is true that the market has slowed down quite a bit. According to a recent study conducted by Zillow, new market listings in the Los Angeles region are down 30 percent compared to what they were in 2019. But this does not mean that no new properties are available. Home prices have not risen as a result of this relative shortage.
New Concessions Have Improved Buying Conditions
A series of new concessions made by home sellers have managed to bring a semblance of much-needed stability to the situation. These concessions have succeeded in regulating the home buying experience in 2020. The idea has been to give new home buyers just enough incentive to encourage them to keep the market in shape for recovery.
These concessions have been made in a number of very crucial areas. Some of them have been aimed toward helping buyers get better financing arrangements for their next home purchase. Others have been aimed at giving real estate agents extra motivation to reel in new home buyers. These are timely efforts that are bringing home buyers some relief.
The ultimate concession has naturally been a gradual but marked decrease in the total amount of average home prices. However, this new series of temporary price reductions have not affected the California real estate market as a whole. It remains to be seen whether this will be the case in the future. So far, real estate experts say no.
The Market Has Recovered from Past Outbreaks
There is one small ray of hope that is worth taking notice of. If events of the past are anything to go by, what to expect in 2021 may be a full recovery.
During the outbreak of SARS in 2003, the housing market in California was able to go into a sort of freeze mode. This held prices steady while preventing any further damage. Once the outbreak was over, the real estate market was able to pick right back up from where it had frozen.
Affordability Issues Will Remain
In all this talk of home prices, there is a fact that should not be lost sight of. One of the chief things to expect in 2020 and beyond is that California's future home prices are sure to remain high. Despite the fact that home prices can be expected to drop to a certain degree, the average price tag will still drive buyers out of the market.
As a result, the rate for homeownership in the state of California will continue to lag behind much of the rest of the country. This is a trend that is not expected to change any time soon. Many people who would once have been in a position to own their own home in California are either renting or making the choice to leave the state.
California is a Buyer's Market - For Now
Perhaps the biggest thing to take away from this present situation is that the state of California can currently be considered a buyer's market. It should be pointed out that this state of affairs is likely temporary. There is no indication that it will be quite so buyer-centric in the near future once these current issues are resolved.
For now, as a buyer, you can concentrate on going ahead with your purchase of a home. It should be noted that home prices have not dropped dramatically, nor are they likely to. This means that home sellers have little to fear as far as losing their profit margin. Despite grave setbacks, the real estate market in the state is a healthy one.