|Closing Conducted by:||Title Company, Escrow Company, Lenders|
|Primary Foreclosure Method:||Non-Judicial|
|Process Period:||3 - 5 months|
|Notice of Sale:||Trustee|
|Income Tax:||1.0% - 13.3%|
|Estate Tax:||40% on Assets over $5.34 million|
|Median Property Tax:||0.74%|
|Property Taxes by County:||http://www.tax-rates.org/california/property-tax#Counties|
|Transfer Fee:||$1.10 per $1,000 of the sales price|
Median Home Value: $819,630 (+30.9% year over year)
Existing Home Sales: 436,020 (+28.3% year over year)
Months Of Inventory: 1.7 (-37.0% year over year)
Median Days On Market: 8 (-57.9% year over year)
Median Rent: $1,861
Price-To-Rent Ratio: 36.70
Unemployment Rate: 7.7%
Median Household Income: $75,235
1 Bedroom: $1,556
2 Bedroom: $1,891
3 Bedroom: $2,226
4 Bedroom: $2,639
Home value appreciation will continue to outpace the national average: Over the last year, median home values in California have appreciated at a rate faster than the national average, 30.9% and 15.0%, respectively. However, over the next 12 months, it shouldn’t surprise anyone to see California home values appreciate at a similar pace. With less than two months of inventory and more people able to build up their savings accounts over the pandemic, fierce competition is inevitable. As more people are willing to pay today's higher prices, values will only increase.
Supply and demand will continue to shape the real estate landscape: Supply has yet to satiate the demand for real estate in California, and it doesn’t look like it will anytime soon. Sure, builders are doing their best to introduce new properties to the market, but they won’t be ready for a while. Until new inventory hits the market, expect demand and prices to rise simultaneously.
Despite being a seller’s market, homeowners will remain content and not pursue a sale: California homeowners know full-well that they could sell their homes for a nice profit, but I am willing to bet few will consider doing so. Despite the amount of equity most homeowners are working with, most appear more interested in keeping their homes than joining the ranks of competitive buyers. They know that if they sell, they will face the same supply and demand issues troubling everyone else.
If homeowners decide to sell, they’ll look to buy in another state: I remain convinced most California homeowners won’t sell, but I am growing more intrigued by the idea of a California exodus. As I already alluded to, the California real estate market is too expensive and competitive. It makes perfect sense that those who do sell decide to look for a home in another state, preferably with fewer taxes, less competition, and lower prices.