The California coast. It’s where everyone wants a home. They desire a place to sit on the beach and watch as the waves of the Pacific roll in. This is also why homes on the coast are among the most expensive in California. The counties that border the ocean have, on average, the most expensive homes in the state.
Around San Francisco, Los Angeles, and San Diego, they average at least half a million dollars. Of course, this is the county as a whole. As you move closer and closer to the coast, the prices rise to over a million dollars or more.
It doesn’t look like those prices will fall for the time being. According to a New York Times article in July, housing prices in L.A., San Diego, San Jose and San Francisco have risen 75 percent in the past five years. And, if you’re a first-time home buyer, just buying a house anywhere in California is a difficult process.
What does this mean if you’re a buyer looking to purchase a coastal home? And what about if you’re a coastal home owner looking to sell?
If you’re a buyer, you’ll have to consider how important it is to own a home on the coast. If it’s something you want, you’ll have to be prepared to pay potentially millions of dollars for a home. You’ll need to look into obtaining a jumbo mortgage, which comes with its own requirements. This previous blog post on mortgage rates will give you the heads up about jumbo mortgages.
However, there is another option if you’re willing to look outside of the major metropolitan areas: Northern California. In both Del Norte and Humboldt county, the average home prices are well below those you would encounter farther south. This means that coastal properties along the Pacific are also lower on average.
If you’re not required or determined to live in L.A. or San Francisco, further north could be the ideal location to purchase that beach home you’ve always wanted.
These are just some of the issues you need to consider when you’ve decided you want a home on the coast.
What if you’re selling?
Now is the time to sell. The prices are at all-time highs and just getting higher. The home you might have purchased for half a million dollars years ago could be worth well over a million now. You have doubled your investment.
Get in touch with your local real estate agent and have them come out and give you an idea of what you could sell your home for. Don’t let this perfect time pass you by before you sell your home.
The prices could start to fall and you could lose thousands of dollars. That same New York Times article mentioned earlier discussed a bill in Sacramento that could change zoning laws, opening up more areas in the major metropolitan areas to residential development. This means more housing and more competition, which would drive down the prices.
There is a lot to consider when it comes to homes on the California coast if you’re a buyer or a seller. Take time to look into what you want and what you need before you decide to purchase or sell a home on the coast. And make sure you reach out to an agent to help you with these decisions. They have the knowledge and connections you need to make it an easier, better decision.
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