Southern California is THE place to live! Surf, sand and snow are all within driving distance and at our fingertips. The housing market in California is red-hot again and interest rates of about 3.75% or less for 30-year, fixed-rate mortgages — not far off the all-time low of 3.31% in November 2012 — have helped fuel the gains.
To the relief of homeowners, the deluge of damaging foreclosures and short sales that flooded U.S. cities during the downturn, a number of housing markets have recovered in a big way in recent years. Housing demand is up in California and this mainly affects first time home buyers. A study by California Association of Realtors shows the top reasons for renting instead of buying:
Most Millennials rent but an incredibly high number live with their parents. is that there are the lowest interest rates in years, so this has become more affordable and appealing to renters. It ends up being less expensive to buy than to rent in California.
So, do we continue to see prices climb?
“The peak value in any given cycle has always exceeded the peak value in the previous cycle. So there was no question in my mind — even during the depths of the downturn — that we would get back to peak [price levels] because we always have. It’s only a question of how long it takes to get there. Of course it took quite a long time this time because [the recession] was so bad. The only question is how many more years of increases beyond that peak can you expect? I don’t know anyone who can tell us that.” – LA Times
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