For many Americans, the dream of being able to purchase real estate in the state of California is out of reach. California routinely ranks within the top five states as one of the most expensive locations to buy a home with extremely high mortgage rates; however, there are certain cities where buyers, with the right knowledge, will have their investment pay off for them in the short and long run.
GOBankingRates spoke to Joe Stance, commercial real estate broker at Stance Commercial Real Estate, and Miriam Cruz, realtor at eXp Realty of Northern California Inc. Here is their insight on locales across Northern and Southern California where buyers have the best shot at finding real estate over the next five years.
Also see these affordable California cities.
Inland Empire (Riverside and San Bernardino)
Stance, who is based in Riverside, California, recommends buying property in two cities within the Inland Empire over the next five years. His specific city recommendations are Riverside and San Bernardino.
Affordability aside, Riverside is ideal for property investment thanks to its strategic location and accessibility. The city is becoming increasingly popular with major companies as more continue to move into the area, which Stance said is helping to create job growth and providing the city with an economic boost. Incentive programs are also offered by Riverside for new developments.
Similarly, San Bernardino has affordable real estate available for potential buyers. The city’s economy is also improving and there is an ongoing revitalization much like what is happening in Riverside.
“For potential investments, always evaluate job growth, city planning and development incentives,” Stance recommends. “With the right leverage, the Inland Empire’s cities are primed for investment.”
San Diego
If you have the financial means to do so, Cruz recommends buying property in San Diego in the next five years.
Cruz cited May 2024 data from the California Association of Realtors in which the median sale price for a single-family home in San Diego is $1,025,000. As expensive as this amount is, she said homes typically stay on the market for an average of 12 days. There’s a high demand for properties in San Diego, made desirable thanks to its pleasant climate, thriving cultural scene and beautiful beaches.
The other major perk is its robust job market. For those in the tech and healthcare industries particularly, Cruz said San Diego is perfect for career opportunities.
Sacramento
Looking for cities in Northern California? Buyers seeking an affordable cost of living without leaving the state are recommended by Cruz to look into buying property in the state capital, Sacramento.
Single-family homes for sale in Sacramento have a median sale price of $555,000, according to the California Association of Realtors. The average market time is 15 days. This is just three days more than homes for sale in San Diego, but priced significantly lower for those seeking a less expensive housing market.
“[Sacramento] has a growing economy driven by government and healthcare sectors, providing stability and ample job opportunities,” said Cruz. “The city’s rich history, diverse culture and proximity to outdoor activities add to its appeal.”
San Jose
If you want to buy property in Silicon Valley in the next five years, Cruz suggests considering San Jose.
Despite a median sale price of $1,770,000 for single-family homes for sale, Cruz said homes in San Jose only have an average of eight days on the market.
“This rapid turnover rate signifies a hot market, driven by high demand and competitive bidding,” said Cruz.
Buying property in San Jose is an attractive idea for those who work in the tech industry and plan to live and work in the area. Additional benefits that come with this investment, according to Cruz, include a high standard of living, excellent schools and numerous recreational facilities.
More From GOBankingRates
Source link
