CALIFORNIA IS FOR SALE...SORT OF
Let’s put it this way, California hasn’t looked this good to buyers in 8 years. All of us who live in the Golden State, and who own or have owned property, have borne the brunt of a grueling recovery. Actually, it was a market in free fall, that caused all kinds of pain, wrecked havoc not just in our fair state, but the shot heard round the world. But a lot has changed in the last 8 years. Part of the pain of a recession is that there seems no way out but to just grind it out. Time, stamina, and determination have been local themes to Californians and in fact citizens of real estate everywhere. Now we find builders are back in a big way, inventories are at historic lows (and by low, try less than half of the top of the 2006 market), money is cheap, and our state especially, is drawing buyers from all over, particularly cash buyers. In fact, according to DataQuick, one in three Orange County buyers in 2012 paid cash. Not surprisingly, the number of deals-- greater than 10,000, was the highest since California’s last down market of 1992, twenty years ago exactly. Why this insistence on history repeating itself? Some would say it is because real estate is cyclical. Others would say it is because people never learn that what goes up must come down. Cycles do happen in real estate, and the cause for each generation’s ups and downs do differ. But germane to the process is a bubble, expanding for that economy’s purpose, driven by that unique component of that expanding market. But purely speaking, it is supply and demand driven. The fuel to the fire this last time around was free loaded lending, irresponsible at best, and many would argue borderline illegal at worst. Recovering from that has been painful and difficult for not only sellers and buyers, but the professionals left behind to deal with the cleanup of the heyday. It is safe to say that we have today, a much healthier housing market, real lending standards, and the current pace of selling is based on legitimate pent up demand, from both move up buyers, first time buyers, and investors who still recognize the bottom of a market, although quickly rising. They are coming in with cash from all over the world, some to stay in the market, holding properties as rentals, some still trying to “flip” properties to the many buyers out there, and some buying luxury second homes. Read on and you’ll learn some interesting information on current numbers, sales, foreclosures, and tips on buying and selling, and why the perfect time to do both is right now!
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