Historically, California Real Estate Has Been a Strong, Long-Term Investment
Okay, so the word is out: It's not a great time for flipping houses. While just two years ago it made great TV and even better headlines as many homeowners realized a lot of money on the sale of their property, the market has certainly changed and people looking to make a fast, quick buck in real estate may have to look harder, longer and closer at their choices. But for people who view real estate as the foundation for a long range financial plan, there may be no time like the present to buy.
Just the Facts
While year-to-year fluctuations are normal, historically real estate has remained one of the best performing and consistent long-term investments. Real estate, like all investments, is cyclical in nature; markets go up and markets fall. But if you look at real estate - especially in California - as a long-term investment, you should consider the following:
National Figures
• According to the National Association of Realtors, median existing U.S. home sales prices have increased on average 6.5% each year from 1972 through 2005 and 88.5% over the last 10 years
California
• Looking at the last 37 years of real estate in California, we have seen very few times in which real estate values have dropped.
• According to the California Association of Realtors, since 1970, the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%.
• In 1970, the median cost of a single family home in California was $26,000.
• Today, 37 years later, California homes have seen a 2,165% increase as the median cost of a home is now $588,970.
Locally
• According to the California Association of Realtors, in 1990 the median price of a single-family home in Marin County was $346,153
• Today, just 17 years later, that same single family home is selling for $1,064,285 - a 207% increase.
The Bottom Line
The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while, the stars are in alignment for consumers: mortgage rates remain low (certainly by historical standards) and there is a large selection of homes to choose from. There may be no time like the present to buy. I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years we've seen very few opportunities in which buyers can prevail and now truly is the time. If you'd like to discuss your opportunities in relation to the current real estate market, please contact me today.
Victoria Wells
415-464-3380 email: vawells@comcast.net
http://www.marinbesthomes.com/
http://marincaliforniaonline.com/
http://www.visitmarin.org/cities.html
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