California Real Estate

There are many real estate markets around the country that are doing well. With the rapid increase in prices in these markets, many buyers are getting nervous about finding a property this year. The good news is that the growth in the housing market looks like it will continue for several years in California.

Inventory is the biggest issue for buyers right now. There are just so few homes on the market today that a bidding war ensues every time one goes on the market. Here are some other factors that are contributing to the strong real estate market in California.

Financing

One of the biggest reasons that the real estate market is strong right now is that financing is easier to get than in previous years. Not only are interest rates low, but many banks are starting to relax their standards for getting a home loan. This is exactly what happened right before the last housing crash and ensuing recession.

Buyers who feel like they cannot buy a home will be surprised if they go to a bank and actually go through the approval process. Many people today are excited about the fact that they can get approved and start looking for homes on the same day. The issue comes from the lack of quality inventory that is available in the state.

Buying a Home

There are several major variables to consider when buying a home. First of all, you need to understand what your basic needs are in a home. Many people today want to buy a home that is as big as possible. Not only that, but they want to buy something that will last them for many years.

However, buyers also need to look at the monthly payment on the debt that they are taking on. If you cannot afford the monthly payment on a home, you should not buy the house. This is a major issue in California right now as buyers feel like they have to pay more than asking price for a home.

Final Thoughts

Overall, the California real estate market is one of the hottest in the country. There are a lot of people who are excited about this shift in the market. Buyers are having trouble finding homes, but over time the market should balance itself. The good news is that financing is easier to get than before.

Related: http://www.capradio.org/articles/2017/07/06/calif-senate-passes-fee-to-fund-new-affordable-housing/


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