In a recent article published in Fortune magazine, there appeared an interactive map of the nation. Each state’s local regions were rated as to the likelihood of real estate values declining over the coming 12 months. Here are the groupings the real estate research firm (CoreLogic) used for the June analysis:
- Very High: Over 70% chance of a price dip
- High: 50-70% chance
- Medium: 40-50% chance
- Low: 20-40% chance
- Very low: 0-20% chance
These are the California regions which were rated and their categories:
Very Low: Chico, Modesto
Low: Riverside-San Bernadino-Ontario, San Diego, Redding, Napa, Merced, San Louis Obispo, Santa Maria-Santa Barbara
Medium: Santa Rosa-Petaluma, Stockton, San Jose-Sunnyvale-Santa Clara, Salinas, Bakersfield, Los Angeles-Long Beach-Anaheim
High: Sacramento-Roseville-Folsom, San Francisco-Oakland-Berkeley, Vallejo, Fresno
While the odds of home prices dropping remains low, the housing market is slowing down. The pandemic housing boom may be over, but that does not mean housing prices will drop precipitously, especially in California.
CoreLogic assessed factors like income growth projections, unemployment factors, affordability, mortgage rates, and inventory levels to determine the likelihood of regional home prices dropping. California overall does not appear to fare poorly compared to the rest of the country. Real estate has continued to be the best investment over the long haul regardless of blips in the economy.
If you are looking to invest in real estate this year – by purchasing property or investing in deeds of trust for higher return – Sun Pacific Mortgage has the answer. We have been in business over 34 years now, offering private money loans and offering Notes for investors. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to find out what we can do for you.
