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Real Estate California-Changing Scenario |
CHANGING PATTERNS OF CALIFORNIA REAL ESTATE
California has one of the worlds largest and most diverse economies. Additionally, demographics in California are changing rapidly. These changing demographics affect the economy - specifically regarding business and land use for the coming years. Changes in age, ethnicity and income patterns can impact the development of projects, investment ventures and local real estate communities.
In California, the real estate investment market is in flux, creating opportunities for the swift real estate investors. While the traditional residential real estate market is in doldrums, there are sectors that will double and perhaps quadruple in the next ten years. Smart investors are taking advantage of the real estate market and accumulating properties in promising sectors. Real estate always poses a challenging aspect of investment. Smart investors have a substantial portion of their portfolios in real estate.
Residential real estate may fall in price rapidly because of two reasons.
- The huge number of properties owned by individual families calls for lower valuation during stagflation or deflation.
- The number of homes for sale, out numbers the number of buyers who want to buy them.
- The property taxes are escalating.
If the budget deficit is out of control; there is always a tendency for property taxes to rise.
The farmlands currently present tremendous opportunities. These lands enjoy lower property taxes. The debt on these holdings is far less. It is time to accumulate farmlands and adjoining properties.
The year 2007 in California has been a year of change. Property sales volume is down, while in some areas (Los Angeles County) prices continue to climb.
Loan products are starting to disappear. Many mainstream lenders are tightening there standards for the 100% loan programs. Some lenders are eliminating low or Zero down payment programs all together.
Real Estate Agents too have thinned out in the market, as the sales volume decreases. There is a tendency towards Brokerage merging.
Now buyers and sellers are redefining the real estate dance, if you will. According to the National Association of Realtors (2006 Annual Survey) 80% of home buyers started their home search online. Despite the consumers choice to seek out initial information online, buyers and sellers still employ the services of real estate professionals, to execute transactional details and complete the process.
About AuthorTemple Schneider, along with Richard Brazil is the co-thinker of a revolutionary online concept, that allows real estate agents and customers to find each other online, and chat in real time. Click here to check it out & avail this technology at American Agent Online Currently this technology is limited to the US.
Source: ArticleTrader.com
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