California Real Estate in 2018:
For the first time in a long time, Realtor.com reports that California markets aren’t fully dominating the nation’s hottest markets. In fact, the Golden State has even relinquished its long-standing top spot. Each month, realtor.com ranks the top metro areas according to where homes sell the quickest and associated traffic to their site is the highest. Historically, California has had the greatest share of the top 20 spots out of any state. Even though 11 of the top 20 markets in March could be found in California, in April, that tally had fallen to only six – which is the lowest number since their ranking began in 2013.
Many are saying that this year, the biggest consideration in the primary California markets is your investment strategy and, more specifically, how long you plan to be invested. Reports have suggested that now may be a great time to invest in California property if you rehab homes, are a home builder wrapping up a project, a speculator who will flip an acquisition, or you’re splitting your property into several rentals, Essentially, if your investment horizon is only a couple of years, California isn’t a bad place to be. However, if you’re a builder or developer with a multi-year project, or if you intend to buy and hold rental property, or if you are investing with the intention of selling in 5+ years, you might be cautious of investing into LA, San Diego or Bay areas right now. If you’re already in a holding pattern, and are looking for a good time to sell, now might be a good time to start the process.
Concerns seem to lie not so much in that home values are at risk of dropping anytime soon, but that the risk of prices peaking and then falling will rise sharply each year. One can never know what will spark the end of a boom or when it will happen, this is where many California markets stand in right now. With huge amounts of continued growth, we are seeing a lot of California money being invested in our home state of Utah.