SOCAL: BYTHE NUMBERS
23% Percentage increase in new renter households since 2007.
Amount that rents have increased in Southern California since 2010.
17%
Median home sales price in SoCal in March 2018. This was an all-time high. $ 519,000
8.4%
Year-over-year gain in regional median sales price as of March 2018.
Percent fewer homes sold in the region in March compared to the year prior. -6.2%
Nearly one in every four SoCal home sales is made to an absentee buyer, such as a vacation home buyer or an investor. Number of professional sports teams that call SoCal cities home. Those teams include two NFL teams, two NBA teams, three MLB teams, two NHL teams, and two MLS teams. 11 Estimated population of Southern California. This is roughly 60 percent of the population of California. 22 million 23%
ties for flipping properties and to own rental properties. There is just not very much construction activity in Orange County, San Diego, or LA outside of some multifamily construction, so those Inland Empire markets are going to represent a good opportunity.” THE DEALS ARE IN THE DETAILS No matter the perspective or strategy on Southern California real estate trends, the key to success in this area lies in close attention to detail. Bruce Norris, famed author of “The California Crash” and “The California Comeback” and founder of The Norris Group, said of analyzing California real estate trends, “Investors have to remember that every housing market has its own history. Look at the data, make charts, and identify when a housing market is at its peak or
at the bottom, then act accordingly. Buy lots when no one wants them. Sell when everyone else is euphoric and buying. If you start to think, ‘If I just hold onto this for two more years, I’ll be a gazillionaire,’ that might be a good time to sell.” It certainly could be argued that the SoCal market is approaching the mindset to which Norris refers, but for investors not quite ready to exit, there are options. Keeping timelines short, margins broad, and avoiding too much reliance on projected appreciation can insulate a deal from market volatility, and the Sunshine State still, by the num- bers, seems to have a little ways to go before the tides change completely. •
Carole VanSickle Ellis is the editor of Think Realty Magazine. She can be reached at cellis@thinkrealty.com.
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