Isaac Toussie Considers California Realty
Significant unemployment, residential and commercial credit contraction, the growing budget deficit, worldwide recessionary spirals, declining consumer confidence, increasing consumers savings propensities and other macro and micro economic factors have merged to create downward pressures on nationwide real estate prices and projects. It is interesting to look at certain individual states and how their real estate markets have fared and how they are changing. I, Isaac Toussie, would now like to offer some thoughts and basic information on the California real estate market in particular.
Statistics show that in 2006 the average sales prices for one-bedroom, two-bedroom, three-bedroom, and four-bedroom residential properties were, respectively: $396,095; $453,897; $521,490; and $653,329. The average price per square foot in California during that year for these properties was, again respectively: $699; $399; $341; and $312. All these numbers are derived from sales of 839 one-bedroom units; 5,005 two-bedroom units; 8,526 three-bedroom units; and 3,966 four-bedroom units, as based on data from assessor and title deeds for the year. Over this decade, Californian housing sales peaked between the latter half of 2006 and the first three quarters of 2007, with a precipitous decline during 2008, right back to turn of the century levels! Residential sales have picked up rather markedly this year, right through the summer, probably buoyed by the low prices created by excess inventory. Overall, and perhaps not surprisingly, four-bedroom units have been by far the best-sellers statewide. There was an interesting spike in the selling price of one-bedroom units for the middle of summer 2001. Prices rose dramatically just before August, and fell right back shortly after August.
According to census reports, the median value of owner-occupied housing in California was $211,500, while the national average was only $119,600. Median asking price for housing in the state was $151,900 against the national average of just $89,600. All this takes place against the backdrop of moderate median household, family, and per capita incomes, respectively: $47,493 compared with the national average of $41,994; $53,025 compared with the national average of $50,046; and $22,711 compared with $21,587.
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