Wondering what’s going on in the California real estate market? Need to know how current conditions will impact your home sale? Looking to buy and want to know what you’re up against? Keep reading for answers!
Property is in demand:
Article after article says it’s a good time to be a home seller right now – and that’s especially true in California. A long-standing housing shortage with no end in sight has led to insatiable buyer demand, which means homes are selling quickly. Sellers have the upper-hand when it comes to negotiations and homes are selling for good returns, sometimes even generating multiple offers and above-list sale prices.
Buyers are getting good mortgage rates:
Even though it’s very much a seller’s market, it’s not all bad news for buyers. Despite small rises, when compared to prior years, mortgage rates are still at historical lows. That means you have more budget to work with. That said, today’s buyers should be wary of over-negotiating. With so much competition in the market, if you ask for concessions, you’re likely to lose out to a better offer. This is anticipated to be the case throughout 2017, so be prepared to be patient and be willing to compromise on your nice-to-have home features.
The California economy is thriving:
The health of the real estate market is strongly tied to the health of the local economy, and the California economy is expected to remain strong throughout 2017. Because jobs are readily available and incomes are stable, more people are expected to be able to qualify for loans and to purchase a new home this year. As a side effect, this will increase demand for quality homes, making the market even stronger for sellers.
To summarize, California home sellers are in an excellent position to make a profit off of their home right now, while buyers will need to exercise patience as they search for their dream home.