Less distressed home sales;fewer investors;cool down in prices will characterize the California real estate market for 2014.
The California Association of Realtors predicts home sales rising by 3.2%; and Home prices to rise 6%. This is more like a normal markets- not 24% increase like we saw from 2012 to 2013.
Out of state properties have their own set of problems. You are at the mercy of the property manager who may or may not be worthwhile. I have gone through 3 of them in Miss. alone. You don’t know if requested repairs are needed and if the price is right. You should at least be involved in the choice of tenants and ask to see the paperwork so you have a say in whether you think the prospective tenant will pay. I try to always do lease options and that is another set of problems- trying to get the manager to understand what you are doing.
Hedge funds have overlooked these markets so they are not overpriced and you can get some good deals if you don’t mind the headache of out of state deals.
You should at least have some one on the ground that you can trust.
Southern California home prices unchanged in July and August as I predicted.
Sales hit a seven-year high for the month as more people could sell as they were not underwater any longer. The median sales price was $385,000 last month in the six-county Southland, unchanged from July and June, real estate firm DataQuick reported Thursday. Prices were 24.6% higher than last year.