There are many wealthy residents. A house in California was sold at a double listing price 2022
There are many wealthy residents. A house in California was sold at a double listing price 2022

There are many wealthy residents. A house in California was sold at a double listing price

The sunny coast of California attracts more and more investors and businessmen. The cost of housing in this part of the United States continues to grow in quantum leaps. Buyers often have to participate in an auction for desired properties. This happened to the house built in 1935, which, according to Bloomberg, was sold 2 times more expensive than the starting price.

«Only one in four families can buy a home in California»

The sunny coast of California attracts more and more investors and businessmen. The cost of housing in this part of the United States continues to grow in quantum leaps. Buyers often have to participate in an auction for desired properties. This happened to the house built in 1935, which, according to Bloomberg, was sold 2 times more expensive than the starting price.

The US real estate market continues to hit record numbers. Analysts say housing prices in 2021 increased by almost 17% and further widened the gap between rich and poor social groups. This is especially noticeable in California, where the housing cost exceeds the national average by more than two times

The sale of a house in Berkeley drew the attention of market specialists. The seller requested $1,795,000 for a well-renovated house built in 1935 and soon received 28 offers. In the end, the house with a total area of 235 sq. m. was sold for more than $4,000,000. Another important detail is that the buyer paid in cash.

It turned out that it is quite common to pay in ready money in the most populous US state. According to experts, this is the result of a constant shortage of housing, the race for higher mortgage rates, and a large number of very wealthy people. At the same time, the mortgage rate increase makes real estate almost unpurchaseable for those who are not ready to pay in cash.

According to real estate agents, in March, compared to last year, the average price of an existing single-family house in California increased by 12% to a record of $849,000. That is more than twice the U.S. average of 382,000 dollars. Almost a third of all houses in the state have been sold for more than $1,000,000. Real estate agents’ data shows that more than 70% of houses were sold above the list price, which increased the average price of a square meter by $40,000 in March.

The housing shortage in California is so immense that it is unlikely that prices will be dropping significantly or for a long time even in the distant future. Experts say the state needs about 180,000 new properties per year. However, there are only about 100,000 new housing units per year, which exacerbates the gap widened due to regulations, land shortages, and astronomical construction costs.

At the end of 2021, even before the jump in mortgage rates, only one in four families could afford to buy an apartment or a house in California.

Apartments in California in the Realting.com database

The Realting.com database offers apartments and villas in California to suit any taste. The cheapest apartment is a two-room apartment worth €758,845. It has a total area of 105 sq. m. with two bedrooms and two bathrooms looking out over the ocean.

One-bedroom ready-to-move apartment with a total area of 135 sq. m. in San Francisco in the Nob Hill neighborhood costs €1,115,949. According to the real estate agent, the apartment has an amazing scale, width, and volume: a huge master bedroom, a spacious bathroom, a renovated and well-equipped kitchen, and an incredibly spacious living room with a dining area. There is even a fireplace. 

A 4-bedroom villa is for sale for €2,179,662 in Los Angeles. The ad states it is a bright and spacious villa facing the ocean. The center of the villa is a living room with panoramic windows overlooking the ocean. Next to the living room, there are two bedrooms with private bathrooms, as well as a kitchen, dining room, and a small office. There is a patio in the backyard, plus, a separate studio with a bed, bathroom, and kitchen. The total living area of the villa is 212 sq. m.

Share using
Realting uses cookies on Realting.com to analyse usage of the website and to enable content sharing on social media. Cookies may be placed by third parties. By closing this message and continuing to use the site you consent to Learn more
Yes, I agree
You have questions?
You have questions?
Get advice from our managers
_account_m_fio_3
Elena
Khotsko
Phone number
+375293706655
WhatsApp
Yusuf<br> Makka
Yusuf
Makka
Phone number
+375296748420
WhatsApp
Konstantin<br> Dvorak
Konstantin
Dvorak
Realting uses cookies on Realting.com to analyse usage of the website and to enable content sharing on social media. Cookies may be placed by third parties. By closing this message and continuing to use the site you consent to Learn more
Yes, I agree