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California Real Estate - Appreciation on Steroids

Authored By: Raynor James

For the last five years, owners of California real estate have been hitting the ball out of the appreciation ballpark. Yes, a real estate market on steroids.

California

California is heavily populated from north to south along the coastline, but they state offers significantly different ecologies. In Northern California, one is much more likely to see signs of the four seasons, get cold temperatures and more historic feel in locations such as San Francisco. Southern California, on the other hand, has an extremely moderate climate with temperatures rarely dipping below 60 degrees even in the winter. Rainfall is also scant with San Diego receiving roughly 11 inches a year. If you are considering moving to California, there are two constants throughout the state.

Traffic

So many people have moved to the state that traffic can be a real issue even on weekends. Los Angles traffic is legendary, but San Francisco and San Diego have their own congestion problems.

Earthquakes

Earthquakes are a constant throughout the state as the San Andres Fault bisects much of the state. Earthquakes happen all of the time, but they are typically very small. If you live in California for more than a month, you won’t even notice them.

Beaches, Sun and Culture

There are serious benefits to living in California. Foremost, of course, are the beaches. If the thought of spending weekends and evenings on the beach appeals to you, this is the place. You’ll pay a premium for it, but there is nothing like it. For example, the temperature in San Diego on October 5, 2005, the day I am writing this, is 79 degrees!

California Real Estate

California is an incredible place to live and real estate prices reflect it. Single-family home prices average as follows for the three major metropolitan areas - $620,000 for San Diego, $1,300,000 for central San Francisco and $750,000 for central Los Angeles. As a general rule, the closer the home is to the ocean, the more it will cost.

As shocking as the prices are, the rate of appreciation is downright impossible to believe. In the last 12 months, California real estate has appreciated over 25 percent. For a 500,000 home, that is a gain of $125,000 in 12 months. Steroids indeed!

Real estate is all about location, location, location. While this is certainly a cliché, there is no doubt it is true in California.

Raynor James is with the site - FSBO America - homes for sale by owner. Visit our home buying page to view and buy California real estate.

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