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The California housing trend: Taking a close look at 30 years of housing data. Building a market on low inventory. One thing to understand about California housing is that boom and busts are central to the market. It is fascinating from a psychological standpoint that today, many think that California housing is a simple and safe bet.
Casually, they forget the massive destruction that occurred only a few years ago and the echoes of the impact are still around: Gear up for a sizable down payment and maximum leverage on a low interest rate. Even with the trend to higher prices, people have the choice to buy or rent.
Unlike stocks, most households have to make the analysis of buying or renting. In spite of rising prices and the meme that home values will only go up, the homeownership rate in California has plummeted.
The state is seeing a wave of households opting to rent. This trend started inwhile home prices held a plateau up until In housing, trends reverse slowly.
But investors those with big wallets have pulled out dramatically early in Yet momentum is shifting but the question is, what will come about this change?
People also forget that the stock market is on a six-year tear and California, especially the Bay Area has a deep connection between the two. Stocks are up and real estate follows. It is interesting to see that the stock market this year is also unsure of what it wants to do.
It might be helpful to look at the Case-Shiller Index for the L. The index also pulls in OC data so it is a nice overview of a very big market.
Here is data going back 30 years: The blue line is the Case-Shiller Index with no adjustments.These factors can cause both short- and long-term fluctuations in the market, but it is also important to understand how all these elements come together to create trends.
Before you begin looking for an apartment, room, or house to rent, you should determine how much money you can afford to pay per month for rent. When year fixed mortgage rates are low, owning a home seems more affordable.
As rates fall, the demand for housing generally rises and so do home prices. The housing market is ending with a bang.
And in the new year, the market will likely cool down, especially on the high-end, mainly because of tax reform. Understanding fair market rent is essential to a successful rental business.
Setting the right rent price can mean the difference between vacancies and attracting good tenants so you can rent your property quickly.
So, it’s well worth it to gauge the market . Whether you are investing directly or indirectly in property, you need to know the factors that affect its value.