There is a strong demand for housing in California. That is the good news. The poor news is that few can afford it. The market has rocketed away from control leaving investors to ponder other solutions. Many are turning to hard money lenders.
The demand for housing in California.
The California Association of Realtors says that essentially all of California is rocking insane by now. The demand for houses has stretched to bizarre levels. That is the good news because it implies that if you are an agent working in that area you have plenty of potential clients who want your services.
And the bad? Few people can buy most of the houses that are currently on the Californian market. They are unaffordable.
The joke in the real estate industry is that if you want to buy a house in California – sure, you can buy a box. Comparatively recently, the LA real estate news traveled the nation comparing property results for $100,000 dollars. In suburban Detroit, you could buy a castle for that amount; in Ft. Lauderville, an orange villa; in Chicago, a stunning condominium near the Lake; and in Manhattan, 200 ft. of earth. California was no better with maybe a small plot that you could rent from an honest landlord with plumbing and utilities included.
Of all areas in California, San Francisco is the nation’s most expensive place to buy with a median sale price of $1,312,500, according to the California Association of Realtors (CAR). The rest of ‘this golden city’ is not much better. In Los Angeles, the median home price is $486,310. But home buyers who want to live in L.A.’s most desirable areas will pay much more, and inventory is tight.