A History of California Home Prices

As we come out of one of the worst down markets in California over the past 40 years we can see that the light at the end of the tunnel is here.  This cycle is not the first or the last as we can see in the graph on the right.  As we travel through these cycles one thing for sure is that the line on the price of housing has continued to go in the positive direction.  In a stable healthy market a 3% to 5% annual appreciation is expected.  Above that we begin to have a sellers market, as we are currently experiencing throughout many parts of California, especially the San Francisco Bay Area.  Of course during the down turns it becomes an excellent buyers market, especially for the investors taking advantage of the economic situation.

 

What we can count on is that as employment and population continue to grow strong so will the California real estate.  If you are not buying to do a quick flip then there is no better time to buy than when you are ready and the same can be said for selling.  Just remember that real estate should be a long turn investment as the prices show on the above graph.  Go on and have great real estate buying and selling!