Little Known Facts About California Real Estate
The prices for real estate in California have increased for 10-15% per year. There one could observe wave-like rapid leaps when rates for some particular types of real estate may rise for 20-30% during few months.
Customers’ Status is Becoming More Firm on the Housing Market
The tension on the real-estate markets eases for the demand decrease and as a result customers will gain certain advantages over sellers. In July the sales have decreased for 2.9% in comparison with those in June. Brokers from some local markets report the supply to grow considerably. And the sellers after several years of high prices have to low them now.
California appeared to be the most expensive county and as a result current changes there are especially apparent.
As realtors report houses supply has increased be several times since March.
In July lodging prices were the lowest since 1995 for many potential customers expect them to fall.
Both on the primary and the secondary housing markets in South California 17867 deals were recorded which is for 27.4% lower in comparison with the same period last year.
As Steve Johnson reports people avoid buying houses for the fear that its cost will considerably drop. This somehow abnormal customers’s apathy is the first case for the last decade.
Ed Smith, California Brokers Association representative, thinks that such a situation was brought about by the mass media which statements are not based on the real conditions, facts and experience.
For some extent he is right for in July the average price of the house in South California was as low as $505 thousand which did not exceed the prices of the beginning of the year. But these estimates do not take in account the fact that the majority of the sales are held on the elite real estate market while the cases of mortgage real estate alienation and the crisis on the hypothecary market has an adverse impact on the sale of the houses for the wider circle of clients.
Broker ad other real estate industry veterans tell the clients, with a solid credit history and who can afford accommodation in prestige district, that the purchase of a house even in such market conditions will turn to be a great long-term investment deal.
General Tendency
The value of supply dominates over that of demand. The new tendency makes brokers and mortgage companies change their strategy. When real estate was bought as hot dumplings they did not pay any commission to customers’ agent and now they offer high brokerage and even some bonuses.
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