The reputation of California has long been a desirable, dream destination. Sunshine, Hollywood, and endless opportunities drew in millions of people from everywhere in the United States and beyond. Real estate became an effortless way for people to make money if they could afford to invest. The desirability of California meant that almost any property purchase would increase in value. The market changed in 2020, and investors need to research rather than automatically buy.
Pandemic Brought Change
Shifts in trends and job opportunities always cause real estate values to fluctuate. In this instance, the changes were most often due to the pandemic. The virus forced people inside and made social distancing necessary. Less populated regions became more appealing. California and other densely populated areas lost residents to more rural areas. Less demand and more houses available caused declines or stagnant property values in California.
Buyers Still Available
About one million homes are sold in California each year, so the market still offers potential. Single-family homes have gained popularity in some areas as condo prices dropped slightly in price. The post-pandemic desire to remain close to job opportunities while still distancing from others could explain the changes. The preference of buyers tends to vary across the state.
Increases Outside California
Lower costs of real estate were part of the reason for people moving to different states over the last few years. The sudden competition for homes elsewhere caused a dramatic price increase in many cities and towns around the country. The change could benefit California as the prices in the Golden state seem less steep in comparison. As the recovery from the pandemic continues to build, it could also encourage former California residents to return to the state they love.
Life returning to normal will produce changes, but experts cannot predict precisely how it may affect the real estate market in the state. Investors can expect price increases over time. The potential profit, competition for desirable properties, and the best time to buy and sell will continue to fluctuate. Sensible investors will continue to watch the trends and act accordingly.