California Real Estate at the Apex of the Nation!
On face value, the real estate environment in California looks as if it is in very good shape. When you compare California with other parts of the country, the value of property is continuously going up. Be it in San Francisco, San Diego Los Angeles or south Orange County, finding a relatively inexpensive property is almost impossible. This is despite the fact that the value of property elsewhere is experiencing pre-crash levels with a number of underwater homes and foreclosures drastically falling.
It is not just challenging to come across a reasonably pocket friendly real estate property along the California coast, but it is impossible to get it. The values of homes are rapidly going up in all the towns and cities within this state. Several factors are responsible for this continuous increase in price that’s anticipated to be an upward trend. Finding that south Orange County realtor who rode the wave and survived the mortgage meltdown of this past decade would be an invaluable asset in finding your dream home in southern California and more specifically in Mission Viejo a well established residential community and the FIRST master planned community in the nation.
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The greater investment within small property ownership is one of these factors that make prices keep on going up. During the financial crisis, investors scrambled for a piece of property in California after the real estate in this state hit a boom hence the grappling up of foreclosures. After buying them at basement prices, investors converted these properties into rentals hence squeezing the little inventories that existed even further.
In 1978, a voter initiative was passed amid the anti tax revolt. This initiative capped the tax rates of Californian property at 1.25% hence freezing all the value of all assessed properties at the original price of purchase. This made the prices of property to naturally soar high since older home owners were offered some remarkable disincentive to selling.
Unavailability of land is yet another factor leading to the soaring prices. Land is very scarce in the most desirable San Diego, San Francisco and Los Angeles neighborhoods. Whenever there is new development within any of these neighborhoods, it will normally involve the bringing down of a property worth $ 1 million after which a property that’s at least three times expensive is brought up. This is very good for the property owners around as it raises the value of their properties. However, it is bad news for any prospective buyer.
Foreign buyers have also been responsible for the increase in prices. Buying a home on many occasions takes too long. Starting from locating a house, price negotiation as well as all the exhaustive mortgage processes consume lots of time indeed. This takes so many months. However, wealthy buyers will take only a few days or weeks to complete a deal, especially if they entice the seller with a slightly better deal. Through this, prices have steadily been going up.
Due to the above factors, it is very evident that little can be done to reduce the value of property in the California real estate environment. Even if the tax law is removed by the legislature, the other factors will still play their part in increasing the prices of homes.
California is regarded as a state of extremity. This is because in almost all the states in the U.S, you will easily get some affordable real estate properties but not in California. This makes California real estate environment to be virtually the best real estate seller environment but the worst for buyers. It is more affordable for an investor to invest in property in the more developed states than doing so in California. For instance, you will spend less when you buy a property anywhere in New York and in Washington than when you go for a California property.
Living in California my whole and having visited family across this beautiful nation, there just has been a state that offers as much as California does in its entirety. We have mountains close by that have lakes in the summer to enjoy and snow in the winter to ski down. We have our beautiful coastline of about 800+ miles to drive along, swim in and sail on. You can’t beat the weather we have in our state, it’s so so comfortable and truly can’t complain. These are just a few of the reasons why living in and buying property in California is so expensive, the cost of living is high, taxes are high but oh, what a state of mind and a lifestyle to live. There is definitely a realtor to be found across this state who will do their best to find a solution and that dream home for you and your family to live in and enjoy the California lifestyle. Should you be in the market for south Orange County living, visit MissionViejoCAGuide.com to find a local agent who can assist you in finding that special home.