Buying a California home for the first time can feel overwhelming, but prospective purchasers should keep in mind that they can remain in control of the process throughout. First, it is important to decide how much to spend including closing costs. A person who is interested in a particular house might want to see what comparable homes are worth. Prices may be driven up or down by the local real estate market.
When buying a home in California, it is important to have it inspected by an independent professional. This is because most homeowners will present their homes in the best possible light to prospective buyers, which means that an individual may not see its flaws right away. Typically, the inspection process occurs either before making a formal offer or after the offer has been accepted.
With the Fed looking to increase interest rates again this year, many potential home owners in California may feel that now is the time to buy. However, low supply in many markets has resulted in bidding wars and steep price increases that are blocking many entry-level buyers from the market. An economist with Trulia announced that sellers have the upper hand in 2017, and it is unclear when residential development companies will be able to capitalize on the growing need.
Residential real estate markets in many parts of Southern California have been extremely active in recent years, and industry experts say that the resulting shortage of supply has led to a rapid increase in speculative building. Custom builders are also being attracted to the region by soaring prices. Residential properties in prime parts of Santa Monica are now selling for more than $4,800 per square foot according to the real estate information company DQ News, and prices in other upscale areas like Beverly Hills, Pacific Palisades and Marina Del Rey are also rising fast.
Rising real estate prices in California and around the country have industry experts and officials at the U.S. Federal Reserve worried. A sudden downturn in property prices that began in 2007 shook financial markets and sparked a worldwide crisis a year later, and fears that the same thing could happen again have led to calls for steps to be taken. The Federal Reserve took action in December by raising interest rates by 25 basis points, but a senior Federal Reserve figure believes that other tools should be employed to cool the property sector down.
In 2017, experts believe a couple of primary factors will affect the real estate market in California and in the rest of the nation. Rising interest rates are expected to affect the affordability of homes, and millennials are getting older and are buying homes.
Real estate investors in California may be able to make smarter business moves by staying up-to-date on the latest trends. Many analysts are saying that 2017 will not be a year for strong economic growth, and there is a lot of uncertainty in the markets. The International Monetary Fund downgraded its original projection about economic growth, and the Federal Reserve is expected to raise interest rates further this year.
Through the years, we have received many calls from California residents who are selling or buying real estate and who want to know if they need an attorney or real estate broker to assist them. We tell them that because these transactions are complicated, going through one without legal guidance from an experienced attorney may not be wise. In fact, just one small oversight or error on a legal document can cause huge troubles.
With all the real estate choices available nowadays, California residents contemplating a move may be wondering if they should buy a home or rent one. While purchasing a home may seem more expensive, considering rising interest rates and inflation, studies have shown that renting is actually more costly in the long run.
For many people living in California, buying a home is the most significant purchase they will ever make. For that reason, finding the right mortgage is extremely important. Residential real estate mortgage terms vary widely, making it important for consumers to read the fine print before applying for a loan.