The market has been on fire recently, surpassing the soaring numbers we saw before the most recent collapse. But as prices continue to climb in California, will fewer people be looking to live here? A new study shows that California holds the top ten most expensive markets in the nation, leaving many agents and brokers wondering whether this is good, or bad, for business.
Will soaring California home prices act as a deterrent for buyers? A new study shows that California is among the top ten most expensive markets in the nation, leaving many agents and brokers wondering whether this is good or bad for business. “California’s Silicon Valley remains the most expensive place in the U.S. to buy a four-bedroom, two-bathroom home,” according to a national study of home prices by Coldwell Banker Residential Brokerage. But have you shopped areas as diverse as Burbank or Orange County?
The average four-bedroom, two-bathroom home costs more than $2.45 million in this year’s most expensive market, Saratoga, Calif. Six of the top 10 most expensive markets in the country are in the Silicon Valley area, and all 10 are in California. This was the third year out of the last five that Silicon Valley ranked as the most expensive place to buy a home.
Meanwhile, prices were significantly lower in many other parts of the country. In New York’s Long Island, for example, the priciest four-bedroom, two-bathroom homes were in Plainview, with an average price of $675,082. The other most expensive markets for the average-sized home ranged from Northport – where prices averaged just under $675,000 – to Commack – where prices average just under $535,000
On a broader scale, the average listing price for a four-bedroom, two-bathroom house in the U.S. was $320,120, according to the study, which analyzed the average listing price of four-bedroom, two-bathroom real estate properties on coldwellbanker.com between January 2016 and June 2016 for 51,163 listings in 2,168 markets. The average listing price of a four-bedroom, two-bathroom home in New York State was $375,402. Nearly 40 percent of the U.S. markets studied had like-sized homes for less than $250,000.
The other California areas that made the most expensive homes list included Newport Beach, Calif. ($2.13 million); Cupertino, Calif. ($1.82 million); Redwood City, Calif. ($1.8 million); and Arcadia, Calif. ($1.75 million).
Top 10 Most Expensive California Markets
- Saratoga*, Calif., $2,453,718
- Newport Beach, Calif., $2,130,338
- Cupertino*, Calif., $1,812,833
- Redwood City*, Calif., $1,807,068
- Arcadia, Calif., $1,748,680
- Carmel, Calif., $1,722,500
- San Francisco*, Calif., $1,672,100
- La Cañada Flintridge, Calif., $1,571,846
- Sunnyvale*, Calif., $1,566,616
- Los Gatos*, Calif., $1,470,524
What impact will these rising prices have on your business? Discussed in an article we published last month, we found that despite many false claims, we actually haven’t seen more people leave California because of home prices.
In fact, as our article points out, we have seen a slight increase in the number of homeowners moving to California, with the reason being that they can afford it. Last year we saw 52,700 residents from other states migrate here, who were making more than $50,000 per year and who do have at least a bachelor’s degree. So, while there are indeed people moving out of state for less expensive markets, they are typically those earning less than 30,000 dollars a year, and who do not have at least a Bachelor’s degree.
How has the pricey market affected your business? Are you seeing more or fewer clients from out of state? What are your market predictions? We’d love to hear from you!
Read the original article here.