Has the California real estate market reached a bottom?
Maybe.
Here is a brief video where Delores Conway, a California real estate economist, says that people buying a house today shouldn’t expect to double their investment, they can expect to see gains.
Some of the other interesting things in the video:
50% of California home buyers are first time home buyers who will be able to take advantage of the 8000 tax credit.
Historically, California real estate has returned between 3-6% after inflation, except in the last 5 years or so where “double digit returns” were common. 3-6% is higher than returns in the midwest, where real estate there returns 1-3% historically.
In areas where homes have dropped 40-50%, the monthly payment of buying a home is about the same as the monthly rent payment if you were to rent the home.
What does all of this mean?
To borrow a line from all of our favorite Realtors out there… now is a great time to buy!
