Finally there is good news for Newport Beach real estate. Till now all the reports related to the real estate industry of this sunny state were discouraging, but finally the things are surely looking up. As per the latest reports, the State of California is all set to beat the slump in the real estate industry.
The signs of recovery
Since last two years, the statistics for the State of California were showing negative sales. But now, finally, there has been an increase in sales of single family homes. The sales-volume figures have shown a growth of two point five percent this year’s report as compared to last year.
In a more specific case, the Newport Beach properties have shown a whooping seventy five percent increase in transactions as compared to the figures of last year. Notably this increase is in spite of the fact that the prices of condos and family homes have seen a jump in these sought-after areas.
Who is buying?
According to the spokesperson for the California Association of Realtors, the sales have been boosted by mainly first time buyers who are exploring options in the low to middle price range houses.
The reason for increase in sales
One of the major factors for increase in sales is because of the fact that home owners are finally facing reality. They have accepted the fact that the price bubble of past was unnatural, hence the high prices of that time were artificial and not sustainable. This realization has made many home owners to lower the asking prices.
This theory can easily be observed in case of Newport Beach where asking prices have fallen by as much as thirty percent. In the high end realty market also, the average price of a house has come down to less than half a million because of which sales have increased by sixty five percent.
But while assembling the list of ‘Best City for Home Sellers’ , in which San Jose and San Francisco appear as the top two ,Forbes magazine looked at other aspects of each city like construction startups, tightness of the market, job creation, home vacancy rates and unsold inventory. Another factor which was also considered and has come into prominence off lately is the tighter restrictions that are being placed on lenders now.
California has always been considered as a torch bearer for emerging trends for rest of America; let us pray that that the same holds true this time around too.
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