The California real estate sector may not have fully recovered from its worst peak during the 2008 economic crisis but again it would be safe to say that significant improvements have taken place. The growth made in California’s tech sector has injected a lot to the state’s economy and this has created an environment where it is very easy for the housing market to thrive.
Consequently, the state has seen a sizable increase in its middle-class residences that are able to lay their hands on new housing units. Many real estate firms within the state have also responded well to this situation – creating more and affordable homes for this part of the population. This has created an economic environment where selling of houses within California has become very easy as the demand is on its peak.
Over the last decade the U.S has been experiencing one of the highest rates of immigration all over the world. Statistics does show that the primary destinations for most of these immigrants have been to states like California, New York, Texas.
The reason for this kind of demographic trend is that these states offer highly favorable economic opportunities due to their relatively strong economies. Again, it is worth noting that real estate sector in California has not been developing at a rate where it is able to meet all the housing demands by the extra incoming population. This has created a situation whereby the few houses available in the market are being looked after by many people and for this reason property sellers do find it very easy to get someone willing to pay full asking price for their property.
In America, a long tradition has been that people prefer to own homes after hitting the retirement age. This tradition may be headed for another turn as the recent statistics from the National American Housing Council shows that a vast majority of the aging population now prefers to live in rented apartments. The explanation put forward is that mortgage rates have been in sky rocketing form. Given that the country is yet to fully recover from the economic turmoil of the 2008, it implies that the government has little to spend on the social welfare and housing needs of the retired and aging population.
Consequently, since a greater portion of this population can’t cope with the ever rising mortgage rates many distressed owners have been forced to sell their homes to investors in California. The buyers of most of these homes are the new generation which has been relying on the recent economic recovery.
Again, it may also be possible that some property owners may be easily selling their homes due to volatile world markets. The dollar has in recent times taken massive loss against currencies of the rising economies like China. This may have created a panic situation which has convinced some people that their property may be worth even less in the future if the dollar doesn’t continue to show strength against other world currencies.
To safeguard against the future financial uncertainties, it is possible that some owners may be pricing their property to sell quickly on the market.