California Moving Trends
The world is changing quickly, and so is the population in California. People are always moving for jobs or family or to seek more valuable or more affordable property. Whether you’re a current or aspiring California resident, knowing where and why people are relocating within the state can help you decide your next move. In this article, we’ve summarized some of the changes that people are making, so you can make an informed decision when you’re selling and buying property.
Factors Affecting California Population Change Since the Pandemic
Nearly 40% of the relocations that occurred in California during COVID happened because housing had become too expensive. In the second quarter of 2020, the median price of a home in California was $610,850, requiring a household income of at least $115,200 to qualify for a fixed-rate mortgage. The median household income at that time in California was far less, so many people moved in search of a home they could afford. Some parts of California, namely the southern parts of the state, were somewhat insulated from these changes because of the large employers and economic opportunities in the area.
Who’s Leaving?
Many people who left California during the pandemic were low- and middle-income families in search of affordable housing, typically households earning less than $50,000 annually.
Who’s Staying?
Many of the people who stayed in California in recent years were wealthier, more educated residents.
Who’s Arriving?
People moving to California during the pandemic were largely people in their 20s and 30s making more than $100,000 annually. These households often had adults that held bachelor’s or even graduate degrees.
Median Home Prices in California
In May 2023, the median household income in California was $744,770. This was a decrease over the median household price around the same time the year before. In June 2023, the median home price was $860,230. Keep in mind that there’s a great deal of variety in home prices from one location to another, and some cities may have higher median home prices than the state overall.
It’s a Seller’s Market
A seller’s market is what happens when there’s more demand from buyers than there are homes available. A seller’s market means that home buyers must make compromises, and sellers can expect to get most of what they want in the home sale.
Many factors must be considered when you’re trying to decide whether it’s a seller’s or buyer’s market, but the sale-to-list price ratio is one of the deciding factors. The sale-to-list price ratio in Los Angeles county in June 2023 was 100%, which means that sellers got their asking price. This indicates a strong seller’s market.
Furthermore, the average time that homes spent the market that month was about 37 days, and the median amount of time it took for homes to go in “pending” status was about 13. Pending status is the status that a home enters when it’s under contract for sale. This is a short period for most homes to spend on the market, which also indicates a seller’s market in the area.
Selling a Home in California? What To Expect, How To Prepare
Ultimately, if you're selling your home in California, particularly if you're in the southern part of the state, you can expect a relatively easy experience. Homes are selling quickly and efficiently and for a good price.
While it's always helpful to clean your home well and prepare your home before showings, you can expect to sell your home efficiently without going the extra mile. Most home sellers are not making concessions or compromises on price.
Despite the seller's market, it's always a good idea to take steps to prepare your home before listing it for sale. If you’d like to maximize the sale price of your home, these tips can help:
Catch up on deferred maintenance. Repair or replace broken appliances, upgrade paint and shampoo or replace carpets.
Declutter and deep clean before taking professional photos for your home listing. Once the home has been deep cleaned, keep it clean for all home showings.
Update your home’s landscaping by planting colorful annuals. Planting flowers and watering your grass can help make your home more attractive.
Clean your yard of any debris to boost curb appeal. Your yard is the first part of your home that buyers see when they pull up. Make it look good.
Buying a Home in California? What To Expect, How To Prepare
Buying a home in California is a challenge. Expect to pay the list price for most properties unless your real estate professional advises you otherwise. Your real estate agent will be able to tell you if a home is overpriced for the area.
Because many homes are on the market for only a short period, it’s important to be ready to make an offer as soon as you find a home that appeals to you.
Get preapproved before looking at homes to purchase. An offer from someone who is preapproved carries far more weight than an offer from someone who is only prequalified.
Know your goals for your new home, so you can feel comfortable making an offer when the right house becomes available.
Act fast when making an offer. It’s always better to be the first one to make an offer on a home if you’re serious about buying.
Work with a real estate agent with experience. It’s harder to buy a home when you don’t have an expert on your side. Find someone who is familiar with the market and able to advise you accordingly.
Ultimately, the process of moving, buying and selling is all about the team that you construct to help you with the process. Working with the experts can make the experience a better one overall.
Author bio: Stan Caramalac is the founder and CEO of Move Central. He started the company because he truly believed that moving could be simple as long as it was done efficiently. He strives to help people make their moves smoother and less stressful. Caramalac and his team proudly serve San Diego, Orange County, Los Angeles and the Bay Area.
Sources
https://www.linkedin.com/pulse/unpacking-californias-migration-trends-shannon-jones
https://www.latimes.com/california/newsletter/2023-04-06/whats-driving-those-moving-to-from-or-across-california-we-want-to-hear-from-you-essential-california
https://www.noradarealestate.com/blog/los-angeles-real-estate-market/
https://www.car.org/aboutus/mediacenter/newsreleases/2023-News-Releases/june2023sales
