Rental Property Investor · San Diego, CA · Member since 2016 · 37 posts · 19 votes
I have some real estate holdings in Southern California and so I tend to watch the market pretty closely. According to http://www.car.org/marketdata/data/haitraditional/HAISoCal/, the affordability has drastically decreased in the last 2 years and it's a downward trend. Some of the properties have increased by 10% in price in a mere 3 months. What do people think about that? housing bubble? Time to sell?
What you're seeing with rising values right now is purely the product of supply-and-demand.
In the crash, some 80% of home builder went under. The demand for housing, however, was not changed and it continued to grow as it does today.
There simply isn't enough housing to meet the demand right now. Housing starts are still way behind the demand. Rentals are being gobbled up as fast as they go vacant.
Keep perspective and stay vigilant. There may be another economic event coming, who knows? Mis-reading the current signs, however, could be disasterous.
Investor · Phoenix, AZ · Member since 2014 · 230 posts · 122 votes
10y
I would hold onto what you have, especially if they're anywhere near the coast. Prices are such that once you're out of CA, you may never be able to get back in.
I just read something posted 2 years ago that said a bubble was on the way. Still waiting...
I don't know how accurate Redfin is, but it's estimating that one of our properties (SFR in Oceanside) has appreciated nearly $100k in 3 years. It's within 5 miles of the ocean, so there'll always be a market for that.
What you're seeing with rising values right now is purely the product of supply-and-demand.
In the crash, some 80% of home builder went under. The demand for housing, however, was not changed and it continued to grow as it does today.
There simply isn't enough housing to meet the demand right now. Housing starts are still way behind the demand. Rentals are being gobbled up as fast as they go vacant.
Keep perspective and stay vigilant. There may be another economic event coming, who knows? Mis-reading the current signs, however, could be disasterous.
Rental Property Investor · Laguna Hills, CA · Member since 2016 · 9 posts · 4 votes
10y
Many properties close to the ocean were not nearly as affected as those that are not. People with money and reserves can take more of a hit and tend to want to live closer to the ocean. Look at historical trends of the areas you think are in a bubble and see how they appreciated or depreciated during the last crash.