Southern CA Real Estate Market Stability

The Southern CA real estate market includes a variety of cities and towns. As in most states, the real estate market can vary greatly from town-to-town when it comes to both price and overall market trends from year-to-year. Evaluating Southern CA real estate market stability is important for investors. The following is some general information on these markets that will help if you are considering investing in real estate.

Range of Communities to Choose From

Throughout Los Angeles County and other Southern CA counties, home prices are very city-specific. Median home prices can range anywhere from under $200,000 to almost 2.5 million. For example, currently in Fairmont, the median price of homes is $152,000. In Leona Valley, it’s $349,000, Northridge $635,000, and Malibu $2,692,500. For a list of median prices in other communities, visit Realtor.com’s Southern CA local market statistics page. For investors, this wide range of prices is actually a good thing.

Investment Diversification

Investing in real estate can help diversify your overall investment portfolio, but the selection of properties and communities should also be diverse. Why? Lower end communities will experience market changes differently than mid or high-end communities. For example, during the last market “crash”, low-end communities experienced steep drops in home prices while mid-range communities had only minor drops in price. If you focus solely on one or the other, the impact of market fluctuations will be more dramatic. Participating in different markets provides added security and stability.

Overall Southern CA Real Estate Market Stability

The great thing about the real estate market as a whole, and particularly the Southern CA real estate market, is that although prices may rise and fall, the trend over time is always an incline. You simply need to ride out the lows and profit from the highs.

Southern CA is a desirable area. With warmer temperatures and many business opportunities, the demand for homes remain even during a down market. The market always seems to bounce back and improve even further than previous highs.

Current Market Conditions

Many communities throughout Southern CA have already bounced back from the last decline. In fact, there is quite the real estate boom in some areas, with prices increasing as much as 88.7% this last February compared to February of 2016. This is an amazing increase within a short amount of time. CoreLogic compiles monthly real estate market statistics by zip code and can offer additional insights into Southern CA real estate market activity. View their February report by clicking here.

What Does This All Mean for Southern CA Real Estate Investors

As with any investment, you want to buy low and sell high. Investors looking to act now have already missed the very bottom of the market. However, that doesn’t mean it’s too late. Investing while a market is inclining offers a great opportunity to build equity in a short amount of time. Additionally, great deals are available for properties requiring rehabilitation. Making smart property selections and executing well planned renovations can yield substantial returns.

There are opportunities in every real estate market, high or low. You simply need to know how to work it to gain the most benefit. That’s where we come in. Our team understands the ins-and-outs of the Southern CA real estate market, renovation projects, and rental investment property management. By participating in our Investment Partnerships, you can become a knowledgeable investor without having any personal real estate investment experience yourself. Contact us to learn more!