Strong housing statistics forecast a recovering real estate market in California
The real estate industry is a complex mixture of data and statistical trends. Foreclosure rates decline and then suddenly increase, while listing prices continually fluctuate based on consumer confidence. The market in California for the past few years has given headaches to even the experts who evaluate the homes for sale in Los Angeles, a city which has traditionally enjoyed a relatively stable market. However, there are a few encouraging trends that project 2012 to be a banner year for real estate in California.
The San Francisco Gate lists a few reasons for this cautious optimism. First, the amount of homes available on the state market has declined by 60 percent in March from just a year ago. This is due to declining foreclosure rates, which in turn cause potential sellers to wait longer rather than offload property quickly in an attempt to beat inflation. This may increase the value of the home as the asking price is driven up.
In addition, listed houses are remaining on the market for much less time, which is a sign of greater competition in the buyers' field. The news source reports that the average amount of time a home stayed on the market in California declined by 9 percent, including a 7 percent fall for condominiums. The difference between the asking price and resulting sale amount on a home closing has also narrowed over the course of 2011.
"The worst is behind California," says Tej Kohli, the chief executive at Ozone Real Estate. "With a stronger job market; many offices and residential units are being absorbed quicker than the supply of new units going into the market."
According to the Wall Street Journal, one industry tracking company recently evaluated the real estate trends in 15 local California real estate markets. At the end of March of 2012, the housing inventory in the entire state was down 35.3 percent from just a year ago. In Southern California, the month-by-month decrease from February to March was listed at 11 percent.
Taking all of this into account, potential homeowners should consider buying property in California, because the average interest rate for a thirty-year fixed mortgage is hovering at 3.89 percent, which is much lower than 2011's 4.95 percent in March. The California Association of Realtors (CAR) predicted that the average price tag of a California home could stabilize around $239,000, according to the news source.