California Real Estate Market Rebounds with Foreign Cash
The real estate market is rebounding in California – but just what forces are driving that recovery? Experts think that this upswing is thanks in no small part to foreign investors who are starting to take a serious look at property for sale in the state. Investors from all over the world including China, Canada and Russia are showing a strong interest in the market here. This is partially because of the perceived weakness of the Euro as well as the continued strength of the US dollar. This is good news not only for California, but particularly for Southern California which has seen the biggest rebound in the real estate market overall.
California sees a big decrease in foreclosures
California has seen encouraging recovery over the last year, with a 27 percent decrease in the number of bank repossessions as of April of this year. Foreclosures are down by 19 percent and California is only in fourth place nationwide for foreclosure activity. The Riverside area is still seeing the most foreclosures in the state with one in 179 properties being repossessed. Los Angeles, by comparison, has only one in 415 properties in foreclosure. The good news is that both of these numbers have gone down in recent months, with Los Angeles seeing a drop of more than 24 percent compared to the same time last year.
This influx of foreign cash has been particularly beneficial for Southern California. Home sales are up by 20 percent and the median sales price, currently at $295,000, is the highest its been in the last year and a half. This upswing involves six counties in Southern California, with Los Angeles county seeing the biggest increase of more than 25 percent over last year. In fact, the market interest in Southern California is driving the recovery of the entire state, accounting for over 70 percent of sales statewide.
Foreign investors like California real estate
Although foreign interest largely accounts for this rebound, other factors are involved. Low interest rates and an improved economy are encouraging buyers in the market for a home. In addition, there are fewer distressed properties available and an increase in demand for housing which is encouraging the market to recover.
What this all means is that if you are in California – and particularly Southern California – now is a great time to sell your home. With the new interest in California property from foreign buyers as well as the overall recovery of the real estate market, now is a great time to put your property on the market. And if you are a buyer, there will be many great properties to choose from and you’ll have the peace of mind of knowing you’re investing in a state that is showing strong signs of recovery.