One of my favorite bits of information to share with my real estate clients is that buying a home in California is never a bad idea. With one of the highest percentages of property value growth in the world, the opportunity to earn up to 10% growth year over year on your home still outweighs high inflation rates and high mortgage rates.
Yes, I used the word never. And you're probably calling bullshit right now on me... It is true that house prices fluctuate over short periods of time. We see ups and downs in the market, that is absolutely true. Rest assured though, that throughout all of history, the value of property ownership has only been going one direction: and that is up.
While the housing market can be sort of like a rolling wave, we do not ever see home and property prices fluctuating and decreasing. They’re fluctuating and increasing: always, always, always. We’ve seen depressions and recessions throughout this country for decades, but property value has only ever continued to rise over time.
Something to think about as well is how long do you want to hang onto a next property?
Because typically, in these rolling waves, the difference between the crest of the wave, the bottom of the wave and then the next crest is about a 7 year window in the US. In California, it’s less. Back when the housing market crashed in 2008, most parts of the country took 10 to 15 years for those values to come back. In the Bay Area of California, not only did it come back in those 10 years, but in most neighborhoods, it doubled.
So if you're going to buy a property it is a really good idea to buy here, no matter when you're reading this article. And once you buy, hanging onto your property to maximize its equity will set you up for your next home purchase, which could be your dream home!
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