West Coast Market Trends
Lack of supply shows that real estate market is still in demand. Nevada is showing an overall price increase of 10% and California 7.6% compared to last year. Sellers are trying to take advantage of the market causing a rise in prices. Buyers have to act quick and be ready to pay more than listed price for homes in low to mid 250k. Multiple offer situation is becoming an everyday reality and houses are sold with 20k above the listing price.
Real estate market across the country is dictated by many factors including: taxation, mortgage rates, employment ratio, availability, life changing events like divorce, marriage, and investor influences.
Freddie Mac reported A comprehensive income of $5.6 billion in 2017. Mortgage rates are climbing and projections show that this trend will continue throughout 2018. Divorce rates in Nevada are the highest compared to other places in US. According to US Censors Bureau, 30% of people never got married, 55% of people married at least once, and 12% of people married twice.
They also share that every 8 seconds one person is born, imagine that while you are reading this, a child just got delivered. But every 11 seconds one person dies… do you think our population rate would decline? Not really, as every 26 seconds an international migration is happening as well. California has the most population in US – 253.8 per sq. Mile. The United States population on February 14 was: 327,192,385
People will continue to be human, will keep getting married, have kids, move-in and move-out and contribute to real estate market. 2018 is promising to be better than 2017.
Now let’s look at details and some hard core data and statistics.
California Association of Realtors reports that they are experiencing lowest inventory in more than 13 years. Sales dropped in five of six counties in the Southern California region, with both Ventura and Orange County decreasing by double digits.
“A severe shortage of homes for sale continues to push up home prices and erode affordability, which in turn is subduing home sales,” said C.A.R. President Steve White. “What’s more, with the passage of the tax reform bill that makes homebuying less attractive, homeownership costs will increase for many, which could reduce the desire and demand for buying a home.”
Median prices are steadily increasing and that tends to slow the market down. As we see in 2017 CA opened with strong sales that declined by the end of the year showing the lowest sales. We see that sales at the lowest segment of the market declined but kept steady at the high-end segment.
Home prices across CA state continue to grow. Forty-five of the 51 reported counties recorded a year-over-year price increase, with 19 of them growing at double-digit rates.
Article by Yelena Brezhneva
Author, Mother of Three, Philanthropist, Las Vegas Personality and High Rise-Luxury Home Specialist with Sotheby’s International Realty