California residents who want a balance of affordable housing and proximity to large cities may prefer to live in the exurbs. However, those who are looking to buy properties in the exurbs may want to consider that home prices tend to be more volatile in those areas. This is because they were often the most impacted by the Great Recession, and home prices are only starting to get back to where they were before it occurred.
In the event of another recession, it is likely that those areas would see the biggest decline in property values. Furthermore, it would like be the exurbs that take longer to recover from any price declines. According to data from Realtor.com, homes in urban settings are 22 percent higher than they were before the recession. Residential properties in the exurbs have only increased 7 percent from what they were before then, though.
One reason why prices in the exurbs are so volatile is because there are fewer people looking to buy homes outside of large cities. Currently, homes in such areas are on the market for an average of 85 days compared to 66 days for homes in urban markets. This is partially because it take longer to get to work or to access basic services that people in a city center have easy access to.
When buying a property in a subdivision or any other type of neighborhood, it’s important to consider whether it provides enough value for a buyer’s money. In many cases, the location of a property can influence its sale price or how easy it is to sell as much as the home itself. An attorney along with a realtor can provide guidance throughout the process.