Timing is everything in real estate. If you are buying, a dip in the market could net you a bargain. Conversely, smart sellers can bide their time until a market picks up before they name their price.
However, you can only get this timing right if you understand property market trends. To help you, we've compiled this short guide to explain some of the latest real estate news.
California Real Estate Updates: Prices
House prices are rising steadily in California, and the region still has some of the most expensive real estate in the US. This is promising news to anyone who invests in property because other economic trends haven't been so promising.
Mortgage rates have been rising, and inflation has worried the average homeowner and forced them to cut back on luxury spending.
However, these prices show that the Californian property market is robust and active.
A Rise in Mortgage Rates
Despite the pricing trends in California, it's still important to understand what's going on with mortgage rates.
If mortgages become increasingly unaffordable for the average Californian family, this will eventually impact prices.
The issue is due to the Federal Reserve's actions to combat inflation by increasing base interest rates. Those rates directly influence what lenders charge on mortgages.
A Limited Housing Supply
With mortgage costs rising, it may seem strange that housing prices continue to increase. To help understand that, it's essential to look at the supply side of real estate in places like Riverside, California.
That's one of the reasons why houses are in demand and achieving their asking price. There is a limited supply of suitable properties available to buyers.
New construction activity is also relatively slow because builders must meet stringent regulations, such as environmental laws. High land costs are also an issue.
The Emergence of New Technology
Technology is playing an increasingly important role in real estate, and it impacts buyers and sellers. It can help accelerate the sales process, supporting many critical points.
Take digital signatures, for example. That has made it easier for parties to process a house sale. But that's not the only area where technology has changed how we do things.
It's becoming more valuable during the property marketing process.
Buyers are more likely to see property listings with videos and virtual tours, making it easier to develop a shortlist before booking an in-person viewing.
New-build constructions can use this same virtual technology to help potential buyers visualize the internal layout. In the future, we may see other ways technology reshapes real estate, such as using the blockchain for transactions.
The Latest Real Estate News
Spotting Riverside housing trends can offer a considerable advantage if you are searching for a good investment opportunity. The latest real estate news in this article gives you the perfect starting point.
At PMI Riverside, our passion for real estate means we are the first to know what's happening with the market. Our Riverside property management team is ready to help, and you can view our services here.
