The Secrets Behind the State's Unique Real Estate Market

California is one of the most coveted states in the United States for homeowners due to its unparalleled climate and oceanside cities. The state also offers all types of terrain—from desert landscapes to coastal cliff sides, to mountainous ski slopes, to lush rolling hills—making it the ideal place for those seeking a laid-back lifestyle that blends the best of outdoor recreation and indoor style. Add the diverse cultural influences to the mix, and you’ll understand why the California real estate market is one of the hottest in the nation.

Luckily for California homeowners who decide to give up their current residences, homes generally sell faster here than in other parts of the nation. This often leads to offers well above the asking price, and even though this might be troublesome for first-time home buyers, it is an investment worth making. Investing in the California real estate market means investing in an architectural paradise that is going green faster than most other states in the nation. Buckle up as we take you on a journey of the whys and wheres of the real estate market in California.

A Diverse Architectural Paradise

The Golden State is dotted with structures of varying architectural designs, but some things remain the same throughout Eclectic compilations of inspiration mix with the bohemian decor of beach life, the natural wonders of the outside world make their way inside, and the past preserved in vintage details that accent modern touches. These varying architectural designs across the state play a major role in the ever-changing California real estate predictions.

Though there are many home styles found in every portion of the state, some seem to perfectly capture the essence of California’s diverse regions. The Spanish-inspired buildings of Santa Barbara, with their white exteriors, red-tiled roofs, and plentiful archways, showcase the city’s heritage. The unique Palm Springs architecture of retro houses evokes nostalgia and an air of Old Hollywood glamor. Up in Northern California, the quaint brick-and-stone structures of Napa and Sonoma Valleys are reminiscent of those found in Italy’s hillsides. Meanwhile, San Francisco is scattered with Victorian structures adorned with quirky color combinations and gingerbread trim.

A State Committed to Going Green

Along with the sleek lines, Provincial architecture, sculptures, fountains, and pools that make the state a feast for the eyes, California also has several oddities that set it apart from other real estate markets in the United States. One of these trailblazing qualities is the commitment to going green. Starting in 2020, all new single-family and multifamily homes of three stories or fewer must come with solar panels. The law is expected to reduce traditional energy consumption by 53 percent and to save homeowners $19,000 over the course of a 30-year mortgage.

The law, which ultimately does good for the planet, has been a major player in changing the existing California real estate market trends. The state’s housing prices are already nearly double those of the national averages in almost every category—such as median list price and price per square foot—and they are even higher in large cities like San Francisco. Consequently, many city dwellers spend approximately 50 percent of their paychecks on rent or mortgage payments while residents in other parts of the country spend between 30 and 40 percent. Additionally, California has the second highest cost of living (preceded only by Hawaii) and is home to half of the top 10 cities with the most million-dollar homes. 

The Hottest Real Estate Markets in California

Real Estate Market in San Diego, California

If you’re house-hunting in America's Finest City, you probably already know that the San Diego housing market is on fire. With all the benefits the city offers, it is no wonder that it is one of the most sought-after Southern California real estate markets. San Diego is one of the best coastal towns to retire in and has some of the best neighborhoods for young professionals. The city offers great employment opportunities, a long list of beautiful beaches, outstanding cuisine, and a plethora of outdoor recreational activity opportunities. And did we mention that the weather is pure bliss? You can enjoy the great outdoors almost all year long! Yes, the home prices in this gorgeous city don’t seem to be dropping, but the investment is worth the trouble. 

Real Estate Market in Los Angeles, California

Unparalleled weather, warm beaches, great colleges, world-class eateries, and exciting nightlife are just a few of the perks of living in Los Angeles. After all, this is L.A. we’re talking about. Most people want to move to the City of Angels because the city represents progress, success, and stardom. Having all these in mind, it is easy to understand why Los Angeles is one of the hottest real estate markets in the state. A house in the city means you have full-time access to Downtown L.A., beautiful lakes, and the city's iconic architecture, and you’ll realize it’s an investment you’ll never regret.

Real Estate Market in Sacramento, California

The ever-thriving city of Sacramento surely makes it to the list of hottest real estate markets in California. The historic Old Sacramento Waterfront, breathtaking hiking trails, and dozens of unique attractions might all be reasons to visit the city, but it’s the job opportunities, living amenities, and abundance of free things to do that have people fighting for a place in the state’s capitol. That, and the fact that you’ll be a short ride away from some of the most prominent cities in the state, and you have yourself a catch.

Real Estate Market in San Francisco, California

With unparalleled vistas, a booming economy, top-rated attractions, outstanding diners, and endless options for outdoor recreation, the only thing not so desirable about San Francisco is the real estate. Despite home prices being constantly on the rise, people keep coming to Fog City and settling in. Seriously, the city has everything you can ever dream of, and it is one of the greenest cities in California too. The least we can say is, The City by the Bay deservedly has one of the hottest real estate markets in California.