California Real Estate Market: Where and What to Buy
The notorious “American dream” has not disappeared from the minds of many Russians: as in the 90s, many still continue to dream about moving to a distant country, however, the present time is strikingly different from the last decade of the 20th century, when practicality in to everyone. California is just such a US state that fits this definition in the context of home buying.
Today, the California real estate market is one of the three US states where foreigners most often buy real estate, second only to Florida and New York. Favorable climatic conditions in this case are the main factor, followed by various types of industries, which California combines in combination with a stable and high standard of living. Experts even claim that if California were a separate country, then its economy could take 6th place in the world. The population of the state is increasing every year, here technology, innovation, the film industry, medicine and agriculture flourish, attracting people from all over the world.
Who buys a home in California
At the same time, people who buy real estate in Los Angeles are different from those who choose southern California: San Francisco attracts entrepreneurs in the field of technology industry and investors, and Los Angeles is famous for Hollywood and other creative spheres. Of the entire territory of California, its southern part, including Los Angeles, is most popular among foreign buyers. The southern part of the state accounts for approximately 15% of all transactions.
In general, real estate in Los Angeles and Southern California is most often bought based on its key parameters: ideal weather conditions – 300 sunny days a year, investment in a reliable market. Of course, crises happen everywhere, but in Los Angeles itself, even during the 2008 crisis, prices did not fall, they just froze for 2 years, after which they continued their steady growth. Customers also often buy housing in California, guided by local opportunities for children and adolescents, as the state has a wide selection of private schools and universities.
Since California consists of several large cities, and is divided into southern and northern parts, the pricing policy ranges from several hundred thousand dollars to the most expensive mansions worth more than $ 200 million. The cost of apartments in new homes starts at $ 500,000-600,000, housing in luxury new buildings is estimated at $ 1.5 million or more. New homes are selling for $ 3.5–5 million, while elite mansions have prices starting at $ 20 million. The average housing price in California is $ 550,000: while the average in San Diego is $ 600,000, in Los Angeles is $ 825,000, and in San Francisco is $ 1.3 million.
Prices in Southern California are an order of magnitude higher than in Florida, but the standard of living and the number of opportunities that open up here are also superior to most US states. Therefore, having a budget of less than $ 500,000, you should not count on excellent options – the cost of a good 3-4 bedroom house in the elite areas of the City of Angels starts at $ 3 million. Ultramodern housing will cost a tidy sum of at least $ 5 million, and with more impressive amounts, there is a chance to become the owner of an elite house in Los Angeles, where the choice is very large, as well as the price range.
In California, detached houses predominate, many of them have their own plots of land. In the centers of San Diego, Los Angeles and San Francisco, you can also find multi-story buildings, but in these cities this type of housing is not found as often as, for example, in New York. New buildings today most attract buyers, although in California there are many houses of old construction that have historical value and are also in good demand.
In California, it’s hard to find the type of home you should avoid buying. Each time you buy a property, a thorough inspection of the house is carried out – an experienced specialist is hired for these purposes, who will check all the nuances and necessary compliance. In particular, houses on hilly terrain need a more thorough inspection, and houses on the first line near the ocean (for example, to Malibu) also need to be checked for piles and corrosion. It is important to avoid especially old real estate (which does not have historical value), where there may be hidden problems that even specialists can’t always detect immediately when inspecting an object.
It is also important to pay attention to the value of the property and its compliance with the average indicators in the market, for example, to avoid potentially problematic housing, which is sold at a low price.