SuzanneDranow.com, being part of the real estate business, meticulously follows the flow of the real estate market, especially in our home region of California. That’s why it’s gratifying to see that as of this year, the real estate market continues to grow and remain healthy, but it would be unwise to count on it remaining so forever.
The good news is, for the near future at least, California’s real estate market is in a very healthy place. Sales of property in California attained a level that hasn’t been seen since 2007, the year prior to the housing bubble bursting across the country. On average, 78% of the homes sold in California have been either at or above the asking price, with homes selling above the asking price averaging about 11%, which is the same figure as last year. On the whole, the numbers are encouraging and show steady momentum and growth.
On the other side of the coin are the reductions in actual activity. Open house traffic, floor calls and listing appointments saw a drop compared to earlier periods. What this translates into is that that a decline may be on the way for people actually in the market to buy property compared to other periods.
This comes as no real surprise during periods of economic uncertainty. With the Chinese economy in flux, and various markets around the world—including America’s—reacting to the shift, bigger ticket purchases such as homes and other properties may drop off as people become more cautious with their savings. It’s a natural response to be more conscientious about expenditures when unpredictable financial shifts come to bear on the market.
Of course, for real estate investors, this presents a real opportunity. With fewer buyers out in the market, a prudent investor that waits for the right moment can find lucrative properties available if things transition more in favor of the buyer, should sales activity slip. This applies both to businesses and residential properties, but in either case, it looks like things in real estate market may be about to change, and it’s up to buyers to decide if there’s some way to take advantage of the fact.