Median Price for Homes in California skyrockets to $800,000 – It’s an opportunity!

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Median Price for Homes in California skyrockets to $800,000 - It’s an opportunity!

 

Patrick Iturra Report, EIG Asset Manager

As per a recent article by Bloomberg wealth, the median price for a home in California will go beyond $800,000 this year, 2022. The numbers were given by the California association of realtors. 

This comes after a price increase of 20% last year, and this will pass the national average price of $357,000

This means that the demand for homes will continue to increase as the supply of houses is not matching up to the demand. Therefore, the prices will go up and there will be lower sales in 2022. 

But is it good or is it bad? How can you make the most out of this? 

Well, in the past career as a strategic investment advisor I have helped my clients to invest & generate long-term wealth for themselves. Using my experience, I am going to explain how you can make the most of this situation. 

Analysis of the current scenario

Currently, there is a high demand for houses in California. One of the main reasons for this hike in prices is that there is a shortage of housing in California already. This results in a lot of differences between supply and demand. As per the state housing department, the state has to build about 180,000 homes every year to meet up the demand. 

With such high demand, prices had to go up!! Remember the equation, when the demand is low, then the prices will go down. On the other side when the demand is higher, prices go up. 

Prices have been increasing rapidly and right now they are on the verge of crossing the $800,000 average house cost in the state. 

What can you do about it? What should you do as an investor? 

First and foremost, if you can manage to buy a house right then you should buy it! The big difference between the demand and supply is going to continue in the state! You should take advantage of it & you can go either of the two ways: 

Flip your property: 

The old school method to make money from housing is to buy a house at a lower price and then sell it for a profit. Although this strategy has proven to work overtime, I recommend that you should hold the property for a long period to make the maximum profit. An ideal period would be 1.5- 2 years. Once you have completed this period, then you can flip your property at a profitable price!

Also read: 5 common mistakes people make while flipping houses 

5 common mistakes people make while flipping houses

Rent out your property: 

This is something specific to the people who already own property in the state of California, so you should rent your property. Keep in mind that whenever the prices of real estate go up, then there is a scope for you to increase the rent. 

Most people won’t be able to buy real estate at such prices, therefore the demand for rented properties will also increase! This gives you the option to leverage the high-demand opportunity and quote a higher rent price to your potential tenants. 

Make the most of it! – take the first step now

This was my take on the high prices of real estate in the state of California; you can consider this as an opportunity to make more money & generate wealth for yourself!

Over the past 25 years, I have been working as a Professional Real Estate and strategic investment advisor, helping my clients build long-term wealth. I am willing to do everything to generate wealth for you as well!

If you want any help/advice regarding buying the right real estate; Or you want to know how to rent real estate to generate steady passive income. 

Feel free to contact me here, I am here to help you!

 

Patrick Iturra, 

EIG Asset Manager, I monitor my investors’ property performance and maximize their real estate income. My job involves leading your real estate investment company’s construction, operations, and leasing teams to ensure optimal value for each asset. FALLOW

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