The Housing Market and the California Dream
By the Numbers
If you’ve been following me for a while now, you know I like to provide a realistic picture of what the current climate is along with a fabulous picture representing the ultimate California lifestyle. (Especially the place I call home in Santa Barbara). It’s a perfect blend to make sure you’re prepared for ANYTHING while still crafting the life of your dreams.
It's important to understand each charge and how it will impact your financing options. When you know the potential ups and downs and understand the trends, you can feel empowered to move forward.
This article is all about painting that picture for you. Giving you a realistic landscape so you can fill in the details of what you want to see in it.
Is there a right time or a wrong time to buy a house?
Let me be very clear. YOU determine he time that is right for you to buy a house. Not the markets. Life changes, job opportunities, relocations and family quests make up the housing market. Statistically, whether you buy any asset including homes, stocks or anything else that can be swayed with trends you’ll win outif you’re playing a longer game. , When you hold on to something for over 10% years, inflation does the hard work for you.
So now that we’ve put that worry to bed, let’s move on to see what that means specifically in California.
What you need to know about the California housing market
According to ManageCasa, a property management analytics platform, “The California median home price is forecast to rise 5.2 percent to $834,400 in 2022, following a projected 20.3 percent increase to $793,100 in 2021 from $659,400 in 2020.” The report suggest job growth will be solid at 5.2% and non farm job growth will be up 4.6% next year.”
What does this mean to you? It means certain loan products requiring a little more paperwork may be required to get you into that dream home but it is TOTALLY achievable. It also means that while prices may be steadily going up, cost of living raises and salaries are on the rise to keep up as well. This could mean a potential plateau or a burst in the ne t few years and that’s why you need to be vigilant about what financial product you agree to.
That’s where I can help. It’s important to understand what home you CAN afford and what home you Should afford. It’s a distinct difference, and it matters in future planning..
Only you know what your budget should be for your comfort and lifestyle.
What about the lack of inventory ?
For many, a California dream remains just that. But with proper planning, no matter where you hail from, you can make the numbers work for you. Here’s what you need to know: while there is a shortage is housing statewide due in part to a LOT of immigration from other states NAR reports that California has a high percentage of homeowners who have reached the “tenured” time period of 9 years in their homes. This is one sign that you may see more homes for sale. Currently Realtor.com has 90,197 homes listed for sale in the state of California. Zillow has more than 48,000 agent listings alone. Redfin has 52,000 homes listed for sale across CA. This means you CAN and will find what you’re looking for!
<h2>So what are the expectations for the California market?</h2>
Rental Property Investors: you may have a hard time finding single family homes to profit off of consistently in 2022, but with lagging rents due to price increases, condos will be a great alternative.
Single family homeowners- the market was flatline even in 2021 over the whole state and post pandemic recovery means that while inventory isn’t abundant, the gems are there!
Just keep in mind the prices are climbing to meet the incomes. (Or vice versa)
I’d be remiss if I didn’t include SOMETHING on the California tax costs of
being a home-owner.
California gets a bad wrap for high taxes. I bet you didn’t know that California's overall property taxes are below the national average. The average effective property tax rate in California is 0.73%, compared to the national rate, which
sits at 1.07%.
I hope you found this useful and good luck in your hunt! If you need a great realtor in my neck of the woods, read below for my featured partner of the month. When you’re ready, I hope you’ll trust me to put you in the best product for your case!
All my best,
Mia Wamsley, an associate of Douglas & Associates at Berkshire Hathaway, is a Realtor in the Montecito and Santa Barbara luxury real estate market. Mia prides herself on providing her clients with high-level style of communication to ensure each transaction is smooth, from start to finish. Her attention to detail is evident in every interaction, from speaking with fellow agents, local lenders, escrow officers, and title representatives. Whether she is showing property or delivering the keys at closing, Mia enjoys every key business relationship necessary to facilitate and close each deal. Her extensive knowledge of the local real estate market and background in client service, provide Mia the skills needed to facilitate complex transactions in a competitive market.
A graduate of California State University Channel Islands, with a Bachelor's in Business, Mia is also a member of the Santa Barbara Association of Realtors and sits on several committees including Community OutReach & Events and the Young Professionals Network. When she isn't selling real estate, Mia enjoys spending time with friends, family, going to the beach, and giving back to the local community.