3 reasons why California housing is about to go bust
California is perhaps one of the most important states in mortgage finance. So much of the mortgage finance world is based in California and, like Texas, the industry is a huge source of employment for workers of varying levels of education. But, trouble could be brewing.
I live in Los Angeles - And I believe its true...
I have noticed a lot of price drops and selling under listing price recently on some favorites I had saved on redfin, just after closing on my first condo in the venice beach area. Just like the stock market, my buying is a contrarian indicator that should signal a great time to sell or go short.
Depends which market you're looking at. As a whole on the CA market, macro indicators could show a potential pull back, but in localized data, high end home sales continue to be moving at a steady clip. Apartment buying is also retaining momentum.
Buyers are simply moving into secondary or tertiary markets for better opportunities. Doesn't matter much that all the big funds and REITs are slowing down here if you're a smaller investor looking to place capital. This is actually a relief for the smaller guys and should make way for some potential deals.
Being a fix and flip investor i was happy to read about less money coming into the market! but @Lee Davis I have been seeing the exact same thing. All the flips we have listed in the last couple months (LA and OC) are sitting and the amount of showing we have are WAY down. From what I am seeing in my personal experiences with the market has me pessimistic (at least for the short term) yet I keep seeing positive article after positive article. really interested to see what the next year brings to the market
I would love to hear what others are seeing first hand in the California market
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