Real estate in California continues to be a hot seller, despite a typical property in the state changing hands for about $1 million. Silicon Valley is the principal reason for such high demand and subsequently high prices. It is usual to see each property to receive about a dozen offers minimum.
Jacking up prices of properties
Cities like San Jose witness average properties to be priced at $1.18 million. In the second quarter of 2017, prices went up by 6.2 percent. To put in perspective, the median price of an American house comes to $258,300 (as in second quarter of 2016). Prices of property across American metropolitan areas have enjoyed rising prices. These happened primarily due to lower inventory levels.
There is one curious trend though. Property owners all over America are finding methods to improve their property values by doing a number of activities. Experts have recommended a number of home improvement tips. These include standard maintenance work, roofing, landscaping and plumbing. Remodeling is also being done. Such home improvement activities adds considerable value to properties. The concerned real estate piece becomes increasingly appealing, and thus much more attractive to purchasers. The homeowners, through the improvement of their immediate surroundings, can upgrade the value of their property. Homeowners can make multiple changes to smarten up properties. Most of them can be achieved at minimal expense. A list of such activities include cleaning the gutters, washing the windows and sprucing up the accompanying yard. A few fixes drramatically jacks up the selling price like making sure that window seals will shut the way they should. Fixing all faucets and replacing standard bulbs for energy efficient light units.
Real estate under tight rein
To put it one sentence, the near absence of supply has assisted to keep the prices of property high in the United States. Majority of home buyers hold the belief that there is little chance of price bubbles in the real estate industry. This is as the mortgage industry is now under tight control. Banks are also now controlled as per tough capital requirements. It also helped that Federal regulators ensure that all banks can sail pass stress tests if the economy suddenly goes south. The massacre of subprime mortgages are already an event of the past. Appreciating property prices are under control. The bullish markets are realistic and not chasing buyers away. It is to be noted that July witnesses a drop in construction of both multi-family and single-family homes.