California Housing Gold Rush

In 10 years, from 1997 to 2006, California median home price rose 205% from $186,490 to $569,350. During those years, I saw investors making $100,000 in a year even on a one-bedroom condo. The amount of money made by small investors was like California Housing Gold Rush.

Thanks to the good weather, historically, California has been blessed with large immigrant population from out of states or other countries to create steady increase on the housing demand.

Surprisingly enough, from 1968 to 2006, there are only 7 down years. Of which the greatest decline in one year is a moderate 4.5% in 1993.

In 2007, we saw a 16.5% decline on California median price. From my observation of the large amount of bank owned and short sale properties on the market this year, I am not too optimistic about the median price going up any time sooner.

Therefore, for those who needs to sell the house due to job transfer or other urgent matters, in a down market, it is best to put it on the market now than later.

Be sure to price your house aggressively to compete with hundreds of other houses on the market including the bank owned ones that are normally selling about 10% to 30% below market.