If you're a home buyer in California it's important to have an understanding of our current real estate conditions. For some the "Golden State" may not seem so gold, yet for others CA homes prices in some areas are upper end for coastal communities while others are more affordable inland.
Here's a snapshot of the CA real estate market from CAR, the California Association of Realtors.
Today the CA median price of a home is $350,140, compared to $588,670 just one year ago. It's no surprise this represents a record setting decline in the median price year-to-year.
It's also interesting to know that by mid-year 2008 72% of the total sales statewide were under $500,000, hence the lower median price. It's something we've also noticed in our own brokerage in So Cal. As the broker and owner, I track our numbers on a regular basis and I've watched our median price drop in our own local market in Orange County.
As for the two extremes in the state here are the facts:
As a CA REALTOR this was not surprise. The facts were pretty much the same the past few years for the highest and the lowest priced areas in our state.
Santa Barbara is one of the most beautiful places I've experienced in CA so it's easy to see why it's so desirable. And it seems to me like I remember hearing a few years back the Santa Barbara coastal region had a median price of over $1,200,000 million dollar range at that time. And that was the median price. Maybe that's why Oprah chose this area for an estate of her own.
The high desert has experienced a lot of growth in the area of affordable housing, therefore it's one of the hardest hit areas in our state. With the added burden of high gas prices. commuting is not always an option, further adding to the problem.
With all that said California remains a great place to live for many of us. Is it crowded? In many places, yes. Do we continue to have some of the highest prices nationwide? In many places yes. Do we have year-round outdoor enjoyment? In most places, YES.
If you're a home buyer interested in California real estate, it's important you work with a local REALTOR. You need a professional who understands your local market. If you would like a personal recommendation of a knowledgeable in your neck-of-the-woods, contact me at Lynda@PreferredHomeBrokers.com.
The professionals at Preferred Home Brokers have been serving home buyers for more than 25 years. Preferred Home Brokers CA Department of Real Estate License #401040.
Data source: The California Association of REALTORS, a professional trade organization.
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Lynda, Broker-Owner, serves So-Cal in real estate. Her focus is about serving her clients, vs. doing deals. Lynda's built a strong following of personal referrals, the foundation of her entire company
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Lynda - a nice summary of the overall conditions in CA. It is good news that affordability has improved in many areas, but while the droip is significant our MDN is still well above so many places. It is data like this that point out how important it is to work with a local REALTOR like you who knows the community and the market conditions.
Jeff
Lynn
It is obvious you really do know your markets well. Folks like yourself will certainly survive our economic woes.
Lynda, as you well know there are some excellent home prices now for all those home buyers thinking of relocating to our sunny state of California and you are just the Realtor to help them find the most house for the least amount.
Lynda - I very informative report. What a big drop in the median price, I suppose it would be more affordable for many if only they could get a mortgage. Have a great weekend.
Hi Jeff ~ You know working with someone local is always important.
Well hi Trey ~ Thank you, I plan on being around for the duration.
Gena ~ You're right about our sunny state, thanks so much.
Jennifer ~ Yes our median dropped significantly, however that doesn't mean prices have dropped equally. That why I pointed out that the number of sales under $500,000 represented the majority our of closings. Therefore that translates to a lower median. More of the mid-upper range sells less frequently.
WOW that is absolutely amazing! That is like a 50% discount! NO wonder people that buy low and sell high ALWAYS come out on top in the end!.
Can you image if someone had just 2 homes and sold those at the peak of the market and used that cash to buy homes right now, while we have record lows?
Katrina
Holy freakin cow Lynda! I knew prices had come down but did not realize just how far they had dropped. These are scary times. Hopefully light at the end of the tunnel is near!
Hi Katrina & Bill ~ As an explanation is the median price of home sales that have declined in 12 months, it doesn't mean home priced had dropped equal to that. That's why I tried to explain that since the majority of sales are under $500,000 that's what dropped the median price for closing. Fewer of the upper end homes were purchased as compared to more moderately priced homes.
Lynda - all real estate is local. That's so much more significant now than ever. The average for an area doesn't equate the same in all communities or even in adjacent condo buildings. I'm always trying to explain, too, that a drop in the median price doesn't mean homes have dropped that much - it means more people are buying lower priced homes!
Hi Sharon ~ Well said. You knowledge and competence shines through in all you do.
Lynda--Wow! That is quite a telling snapshot! It tells me that homes in CA are much more affordable this year than last! Hopefully with good information from experts like you, more buyers find their California dream homes!
Lynda I loved this snapshot report on CA Real estate - Redding is not yet considered a "crowded" city with population just around 90,000 so it appeals to many Californians who want to get away from the fast-paced life.
thanks for the info on your post.
Maria