Real Estate in California

The real estate industry in California is in its lowest level as of today. The reduction of price is widely attributed to the global recession that struck the world from the year 2007. Before the global recession, real estate in California was at its highest pick. Residential houses could be bought at a price of $ 1 million. This amount of money is very hard to find in the present time. Many people have refocused their priorities on basic needs than investment. This means that it will take a long time for the prices of houses to stabilize. Buying a home or a house at this time has two implications. A long term investor can enjoy the low prices today with an aim of capitalizing on future price increments. This move is however speculative and could crush down if prices fail to rise to higher levels.

The real estate industry has had a lot of shakeup in the past four years. The shakeup made the industry so volatile. The government had to come in at some point to help provide incentives to buyers so that the industry could be revived. These incentives have been eliminated at the moment. This means that very few people will be buying the houses at this time. I recommend that buying a house at this point will not be a viable investment. Home owners are at this time working so hard to recover the moneys that they spent in the constructions. Such money recoveries always make sellers inflate the prices. This means that a person can buy a house at a high rate only to lose the value with the sobbing prices.

I disapprove any move to buy house at this time. The present home owners have more loans than what their properties stand at. This harsh feeling makes investment in this sector an idea that should not be encouraged.