Rising gas prices and living costs make living less attractive in the Golden State than ever before. So what good is it to have a nice house in Riverside, but have to spend hours in the car to get to work and back, spending a small fortune along the way?
Many people are struggling with the decision to continue living in California. In fact, in 2020 and 2021, more people left the state permanently than arrived to live there. The California Exodus (as it’s been dubbed) has only accelerated in 2022, with nearly 360,000 people moving from the state.
There are many factors to consider when analyzing why people are leaving California. These include high gas prices, increased tax rates, traffic congestion, and an extreme housing market.
The real estate market in California is unlike anywhere else in the world. Rental prices continue to skyrocket, and with increased interest rates, purchasing power decreases while home inventory stays low and expensive.
With inflation climbing through the roof, now may be a great time to sell your home. And in turn, you can use that equity to move to another state.
Reasons For Skyrocketing Real Estate In Riverside
There are plenty of contributing factors to why the property values of Riverside are as high as they are. This includes everything from the proximity to primary job sources to new home development and more.
One primary factor driving up the price of real estate is that inventory is low while demand is high, making it a seller’s market. In a seller’s market, the owner has more power in the deal they will agree to in selling the home. Quick, as-is, cash-buyers become much more attractive than traditional or even VA loans with rigorous standards before loan approval.
Other reasons include that many homeowners have been priced out of ownership in other areas, making commuting from Riverside and the Inland Empire more attractive. At least, it was more attractive in the past when gas prices were lower.
A recent development in real estate ownership has been the infusion of REITs and LLCs owning real estate as investment vehicles, guarding against liability and risk while maximizing opportunities. For traditional home-buyers, these types of investors can snatch up properties, further inflating the market’s value.
Combined with inflation, rising gas prices, a much higher cost of living, and increasing interest rates, now may be the best time to consider selling your home and relocating.
Reasons To Sell Your Riverside Home Now
There are quite a few reasons to sell your Riverside home today. With low inventory, lower interest rates, and a higher cost of living, now is the best time to make your move. Let’s break these considerations down.
The low volume of homes on the market creates more advantages for the seller than the buyer. The buyer has to come up with more attractive and competitive offers to get the seller’s attention.
Typically, sellers can be more selective and wait it out, knowing there are more offers around the corner. Right now, we are in a topsy-turvy market as inventory remains low, driving prices up, but borrowers have to pay more due to increased interest rates, depressing the market some.
The FED is the institution that sets the Prime Rate. The Prime Rate is the amount banks borrow money on, setting their rates for consumer loans.
As interest rates increase, the amount borrowers pay on their loans increases as well. For some borrowers, an increase in interest rates prices them out of the market altogether.
As interest rates increase, fewer buyers will be on the market, stabilizing home purchase prices and making it less competitive. As this occurs, sellers will lose some of their advantages over buyers, and prices won’t continue to rise as they have over the past two+ years.
High Cost Of Living
Another contributing factor to selling your home right now is that California’s cost is one of the highest in the United States. Between the price of gas and food and individual tax rates, the cost of living in California can be burdensome. For example, states like Arizona have an income tax of less than half of California’s.
If you want to get out of the burden of living in an expensive place like California and taking advantage of the real estate market in Riverside right now, there are a few ways to sell your house fast in Riverside.
Three Ways To Sell Your Home Fast
If you’re looking to sell your home fast, here’s how to do it:
- Cash Buyers: Consider selling as-is for cash. Often these buyers are looking for below-market deals, so expect to sell for less than traditional buyers, but you’ll get your money faster and have fewer requirements to sell.
- Corporate Buyer: Another cash-selling option is to consider selling to Zillow, Open Door, and more corporate buyers that are out there. Like other cash buyers, corporate buyers want to make a below-market deal. Sure, they’ll tell you they will buy near the list price, but upon inspections, they’ll ask for a negotiated price.
- Traditional Sale: Hiring an agent and utilizing their broker for marketing, providing you with a buyer, liability, and legal protections are just some of the benefits of conventional buying. The problem is that you could suffer the ups and downs of the market fluctuations by going this route.
As prices continue to rise and interest rates soar, now is the best time to sell your home in California, from Riverside to San Francisco and all points elsewhere, before the market has a correction.