Homebuyers are buying up a large number of homes in California, particularly in the southern part of the state. These in-demand residential real estate properties are valued at over $1 million. In fact, four counties in the southern portion of the state had more than 21,000 sales of million-dollar homes during the 12-month period ending in April -- an 11 percent increase from the previous year.
The recent surge in buying real estate in California stems from many factors. These include the availability of cost-effective mortgages and a healthy local economy. In addition, there has been a jump in foreign purchases and investor activity.
Price appreciation is also continuing, which has nudged some nice homes that are not necessarily luxury homes into the $1 million range. Whether this surge in California's high-end residential real estate market is based on logic or business is currently unclear. However, seven-figure home purchases are undoubtedly becoming more common in the state.
Purchasing residential real estate in California can be complicated, especially for those who have never bought in the highly competitive Golden State market before. Selling real estate also comes with its own set of challenges. Not knowing how to approach a deal can unfortunately cause the transaction to flounder, thus wasting money, time and energy, or cause a homebuyer or homeowner to be taken advantage of during the negotiation process. It's particularly important for homebuyers to be acutely aware of closing costs so that there are no surprises when the deal is consummated. An attorney can help to ensure that one's wishes and best interests are upheld on either side of the closing table.
Source: ocregister.com, "Southern California million-dollar home sales soar to record high", Jonathan Lansner, June 9, 2017