The largest housing authority in California has studied the trends of the 2019 California housing market and has released its predictions for 2020. As with all housing market predictions, these are not guaranteed to be accurate, and you should check often for updates. For the time being, let’s take a look at what the pros are saying.
According to the California Association of Realtors (C.A.R), the housing market in California will favor buyers over sellers. C.A.R president Jared Martin said, “With interest rates expected to remain near three-year lows, buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties.” These uncertainties are not attributed to any specific source in the recently-released article, but it is a safe assumption to say that buyers may be hesitant to make large investments in today’s day and age.
C.A.R’s forecast predicts an upswing in single-family home sales. A growth of around 0.8 percent is expected, but last year’s figure was lower than that of 2018 so there’s no way to be sure that the forecast will be accurate. The price for homes in California is expected to increase by 2.5 percent to $607,900 and the mortgage rate is expected to drop to 3.7%.
It is also important to note that first-time buyers struggle greatly in the California housing market. While mortgage rates are dropping, the cost of a home in California is very high and is predicted to increase. First-time buyers cannot afford the hefty down payments or monthly payments required to live in California, so they are looking out of state instead. Other more established residents are saving money by partaking in the relatively stable rental market which has grown in popularity over the last several years. Unfortunately for renters, the rental prices are expected to increase slightly in 2020. The change should not be significant, but it could prove too much for some renters and force them to leave the area.
California can be very profitable for those who build-to-rent or flip properties. Why? Because there is a huge demand for housing in the state, and not nearly enough supply. If you can find a property that isn’t too expensive and you’re able to flip it for a low budget, you can make a lot of money by selling it or renting it at a competitive price. That being said, keep an eye on the California housing market as 2020 progresses, because what the experts predict is not always the reality we see.
If you find a good property in California, jump on it! And be sure to get in touch with the team at Zinc Financial. We are the best place to get rehab loans for flipping properties. We work with you to get you the money you need to invest in your next project. Visit https://bsyl.ink/Zinc-Borrowers to apply.