Golden California stuck: a disturbing real estate stagnation
Golden California stuck: a disturbing real estate stagnation
California is usually associated with wellness, luxury, VIPs, very long and super crowded beaches. Despite being a destination for many tourists, especially from the 90s onwards, in the last quarter of last year, it recorded a sharp decrease in sales, leading to a real phase of stagnation (which was not seen for five years) .
Annual sales of single-family residential properties amounted to around 300,000 units in December. An element to the detriment of this nation, considering that this result is the result of the decline in sales of 2.4% in November, and 13% in December compared to the year 2017, which saw California touch very high sales peaks (about 420,000 units).
The problem arises from the strong level of competitiveness of the neighboring markets, which have on the one hand led to a strong instability and unpredictability for economic - statistical surveys, on the other to a shift in the demand curve increasingly distant from California. House prices have also declined, but new investments are struggling to take off.
The current average price of a California property has fallen to $ 500,000 in December. A frightening collapse if you think that two years ago, for 365 days, the standard prices of a property in California were around 600,000 dollars. The increase in interest rates has further precipitated the situation.
According to the statistics, in the following months, a hiccup of sales is expected followed by an almost total arrest.
The application of an innovative policy would be the only key to recovering the highly critical situation. In detail, at regional level and not seasonally adjusted, sales plummeted by two figures on an annual basis in the San Francisco Bay area, the central coast, the Central Valley and the southern part of the state, thus causing a percentage loss de 24.8%.
Ben 39 is the number of counties that recorded a significant loss of sales in December of 20% compared to 2017.
On the other hand, the total of the counties that have lost the famous two figures on an annual basis and 10 those that have recorded a slight increase is 34. Sales in the San Francisco Bay area have plummeted by 17%.
The famous Los Angeles metropolitan area has been the subject of this devastating wave, recording a rapid down of 18%, especially in Orange County.
The average price of all real estate properties has generally increased in all regions. Exception made for the area of San Francisco, which has instead maintained prices that remain around a million. Unfortunately, the unsold inventory index also increased by 5% and the number of days needed to sell a property rose from 25 days to 32.
What to say, the situation is really critical, but it is hoped that it will change positively for the new year.
California is usually associated with wellness, luxury, VIPs, very long and super crowded beaches. Despite being a destination for many tourists, especially from the 90s onwards, in the last quarter of last year, it recorded a sharp decrease in sales, leading to a real phase of stagnation (which was not seen for five years) .
Annual sales of single-family residential properties amounted to around 300,000 units in December. An element to the detriment of this nation, considering that this result is the result of the decline in sales of 2.4% in November, and 13% in December compared to the year 2017, which saw California touch very high sales peaks (about 420,000 units).
The problem arises from the strong level of competitiveness of the neighboring markets, which have on the one hand led to a strong instability and unpredictability for economic - statistical surveys, on the other to a shift in the demand curve increasingly distant from California. House prices have also declined, but new investments are struggling to take off.
The current average price of a California property has fallen to $ 500,000 in December. A frightening collapse if you think that two years ago, for 365 days, the standard prices of a property in California were around 600,000 dollars. The increase in interest rates has further precipitated the situation.
According to the statistics, in the following months, a hiccup of sales is expected followed by an almost total arrest.
The application of an innovative policy would be the only key to recovering the highly critical situation. In detail, at regional level and not seasonally adjusted, sales plummeted by two figures on an annual basis in the San Francisco Bay area, the central coast, the Central Valley and the southern part of the state, thus causing a percentage loss de 24.8%.
Ben 39 is the number of counties that recorded a significant loss of sales in December of 20% compared to 2017.
On the other hand, the total of the counties that have lost the famous two figures on an annual basis and 10 those that have recorded a slight increase is 34. Sales in the San Francisco Bay area have plummeted by 17%.
The famous Los Angeles metropolitan area has been the subject of this devastating wave, recording a rapid down of 18%, especially in Orange County.
The average price of all real estate properties has generally increased in all regions. Exception made for the area of San Francisco, which has instead maintained prices that remain around a million. Unfortunately, the unsold inventory index also increased by 5% and the number of days needed to sell a property rose from 25 days to 32.
What to say, the situation is really critical, but it is hoped that it will change positively for the new year.
