California Real Estate The True Believers
You will still pay about three times as much for a 4 bedroom, under 10 years old home, in any nice California suburb near a major city(with a Pro team), as you will in Boise, Charlotte, Cleveland, or Austin. Pick a southern or rural area, and it’s the same.
Unemployment is higher in every California city than those above. The state is going into a death spiral with layoffs of fire, police, and educators. Medical freebies were severly cut this week. Higher taxes are expected to help, but they will bury business growth prospects.
Hiring chances are better in the cities mentioned. Employers and job hunters are exiting the Golden State in record numbers. This one is, was, and will always be a model of democratic socialism in government.
To sell houses, you need buyers that can qualify, and make those low low payments. It takes jobs.
The point: California real estate is still overvalued by 20-40%. It dropped until all the equity was gone. Those that won’t or can’t sell at a loss are paying their mortgages, praying, and looking for an exit. Repos are at a well concealed level. If you have CASH, offer 25% below asking, and wait.
Prices will drop for two more years, then collapse.
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