Author Topic: California real estate in five years  (Read 2820 times)

rob in cal

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California real estate in five years
« on: May 28, 2014, 10:18:23 AM »
   California real estate, at least Northern California, seems about half way recovered from its plunge of 2007-2010.  The question is, will it reach its 2006 peak price over the next few years, and will it even shatter those levels.  The Bay Area shows no sign of slowing down its resurgence, and this might drag our area (Sacramento suburbs) along with it over time.

dragoncar

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Re: California real estate in five years
« Reply #1 on: May 28, 2014, 10:59:17 AM »
Watch SF which has surpassed it's old peak.

Another Reader

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Re: California real estate in five years
« Reply #2 on: May 28, 2014, 11:27:23 AM »
The market is bifurcated.  Desirable coastal areas have largely recovered.  Less desirable inland areas have partially recovered, but have leveled off.  My crystal ball is not currently operable, so I can't tell you where the market will be in five years.

waltworks

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Re: California real estate in five years
« Reply #3 on: May 28, 2014, 12:35:43 PM »
Nobody knows.

With that said, historically housing is not NEARLY as volatile/exciting as it's been in the last 15 years or so. Long term I would generally expect housing to track inflation plus maybe 1%. If you're feeling lucky the stock market is probably a better place to throw your money.

Or maybe not.

-W

Poorman

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Re: California real estate in five years
« Reply #4 on: May 28, 2014, 12:42:46 PM »
Nobody knows.

With that said, historically housing is not NEARLY as volatile/exciting as it's been in the last 15 years or so. Long term I would generally expect housing to track inflation plus maybe 1%. If you're feeling lucky the stock market is probably a better place to throw your money.

Or maybe not.

-W

California real estate has been volatile/exciting since about WW2.  What the rest of the nation experienced in 2006 is a regular 10 year occurance in California, albeit on a smaller scale.

Poorman

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Re: California real estate in five years
« Reply #5 on: May 28, 2014, 12:50:35 PM »
I agree with the post about a bifurcated market.  The inland and desert areas experienced a bubble SOLELY because of unsustainable financing.  The intrinsic value was never there to justify double digit price increases.  The coastal areas, while affected by the same unsustainable financing in 2006, do have an intrinsic value from growing rents that will eventually help them surpass the previous market high, if they haven't already.

JoJoP

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Re: California real estate in five years
« Reply #6 on: May 29, 2014, 09:50:37 PM »
In my area-- northern San Diego county.. the prices are still off the crazy highs of 2005, but, they are nipping at its heels. 

Now, though, the buyers seem more educated.   The market is busy, but not frenzied.  So maybe that same 2400 sq ft house is selling for 535,000K ( a good median number in my area), but the house needs to have no deferred maintenance and some or all of the bells and whistles popular in my area.  That would include remodeled kitchens and baths; nice yards, etc. 

 

Wow, a phone plan for fifteen bucks!