The Challenges of Selling a House in Northern versus Southern California
The real estate market continues to soar in California. It feels like a train that will never stop. Although it’s common to see real estate price tags in CA with multiple commas and zeros, selling a house still comes with its set of challenges. Since the pandemic, there have been major migrations to and from particular areas of the Golden State. Selling homes in certain markets used to be a breeze before the demand shifted. Fortunately for some, and unfortunately for others, the real estate market has shifted. If you’ve wondered how can I sell a house in California, this guide will highlight the challenges to expect depending on your location.
Here are several factors to consider when preparing to sell your home in Northern versus Southern California.
California Residents Are Moving to the Suburbs
Since 2020, California residents have displayed their interest in living outside of major cities. For example, cities like San Francisco experienced major outgoing migrations as people left the city and moved to more remote places. Where did they move? California city dwellers decided to make nature a priority. Rural areas like Lake Tahoe saw increases in population over the past few years from people leaving the Bay Area. Similarly, in Los Angeles, many people migrated out of the city to places like Big Bear and Joshua Tree. Short-term rentals experienced a huge increase in demand as people wanted to getaway. What does this mean when trying to sell your house in Northern or Southern California?
Expect fewer buyers to be looking in major cities like San Francisco. Fortunately for sellers, since inventory still remains low, they have felt the pressure of less demand – yet. There are still jobs in areas like San Francisco, but not as many as there were before the pandemic. San Diego and Los Angeles offer arguably more options that are nearby these major cities that attract homeowners who are seeking a more rural experience. The more east you travel from the heart of LA, the more options, such as Pasadena, are on the table. The Bay Area is a bit more clustered and congested in terms of rural areas directly close by unless you travel down to somewhere like Santa Cruz.
Remote Workers – Cities Less Demand
Since the job landscape has changed so drastically across the United States, it is affecting real estate demand. For example, fewer people need to live in a condo directly downtown because they can now work remotely. This makes selling a house or property in the heart of a city more challenging because there are fewer buyers. Most major cities, like San Francisco and Los Angeles, are experiencing this to some extent. If you own a condo in the heart of San Diego, it may be tougher for you to find a buyer than it was previously. People are now prioritizing features like a yard, nature, and outdoor space more. Employers are offering more flexibility to work remotely in California, which has affected the real estate market.
This is an understandably tough subject for many California residents. Regardless of if you live in the Northern or Southern part of the state, there’s a chance that your life has been impacted by a fire. Typically, homebuyers don’t avoid places if there has not been a fire in a long time. However, if there was a bad fire over the past 1-2 years, that can affect trying to sell your house. People think the worst and get nervous knowing that a recent fire roared through a certain area that they could potentially live in for years to come. It’s hard to call any part of California completely ‘safe’ from fire exposure unless you’re in the desert with nothing around. Fortunately, CA is a strong state and always bounces back from devasting fires. The cliffs, oceans, weather, and experience will continue to inspire out-of-state residents to move to places like Los Angeles and San Diego.
The Changing CA Real Estate Market
Real estate markets will always ebb and flow. California is no stranger to that. The pandemic through a wrench in the direction our state was headed. However, there is still demand for real estate, it may just appear different than before. If you live in Los Angeles and are considering moving and renting out your property, give us a call today. We provide property management services to landlords throughout the greater Los Angeles area.