Have you been keeping an eye on the California real estate market? If so, you know how sought-after a home is in the Golden State. And it’s no wonder; California is one of the states in the U.S. where dreams really do come true. From the majestic sceneries up and down the coastline to the variety of fresh foods and the industries of Silicon Valley and Hollywood, California truly has it all. However, one thing to know before you decide to move there is that it’s expensive. Not only are essentials like gas and food more pricey, but real estate is at the top of the market.
But fear not, because there are still some cities in the California real estate market where home prices have gone down significantly in the past few months, with prices expected to dwindle further in 2023.
California Real Estate Market: 8 Cities Where Home Prices Have Gone Down
The City by the Bay has something to offer everyone, especially if you are in the tech or entrepreneurial sector for work. Despite the rate of rent going up 101% in 2021, more young professionals are moving to San Francisco, making it the perfect place to start your career and become a homebuyer all in one place. The median sale price in September was $1,196,667, changing over the next three months to minus-$188,333, or down -15.74% according to Zillow. This is one of the largest declines in the California real estate market.
Just down the peninsula from San Francisco is San Jose, the epicenter of Silicon Valley with access to mountains, beaches and lots of nature surrounding the city limits. Plus, it’s the new place to strike it rich. San Jose has the highest number of wealthy individuals in the world: One in every 727 citizens is worth $30 million, according to the 2021 Wealth-X World Ultra Wealth Report. Find your way here while the housing market is as fair as the city’s idyllic weather. Zillow shows the median price in September was $1,480,000, down 3 months later at minus-$173,833, or down -11.75%. San Jose is one of the more popular cities into buy in the California real estate market.
Sacramento, the capital of California, is a remarkable place to buy a home right now, with a median sale price of $572,833 in the preceding months and a 3-month change to minus-$30,500 or minus-5.32%. The city is home to roughly 18,000 job openings and is experiencing economic growth that surpasses that of other California cities. Residents report that traffic is generally mild, making it easy to get around. Additionally, the money you’ll save on cost of living can be spent on a vacation to Lake Tahoe or a quick trip from the international airport.
Stockton might not have the culture cache of other California cities, but it’s a terrific place to buy a home and put down roots. Centered right in the heart of the Central Valley, housing prices are significantly lower than other urban metro areas by almost a third of a city like San Francisco. While being one of the agricultural centers of the state, it’s only about a 90-minute drive away from The Bay Area. But don’t think you need to drive that far east to find culture because Stockton is home to The Haggin Museum, the historic Bob Hope Theatre and the University Park World Peace Rose Garden. Zillow has September’s median sale price as $518,333, down -$41,667, or down -8.04% three months later. Stockton has been gaining significant popularity in the California real estate market because it is a do-able commute to the Bay Area for work.
Lights! Camera! Los Angeles! The City of Angels is one of the most iconic cities in the world. With housing prices dropping, it’s more affordable to live in Los Angeles and make your dreams of fame and stardom come true. But it’s not just Hollywood glitz and glamour that Los Angeles has to offer. If you are a foodie or just someone who likes a good meal, LA is home to some of the best and most diverse cuisine from around the world. According to Zillow, the median sale price in September was $901,333, then down -$63,667, or down -7.06% three months later.
Looking to put down roots but still stay classy? America’s Finest City, as it is called, is known for beaches and sunny days for most of the year. San Diego’s median sale price of $853,333 was in September and has experienced a 3-month change in price of minus-$55,000 or minus -6.45%. The city is a top destination for education, with high-ranking undergraduate and graduate programs at UC San Diego, San Diego State University, Cal State San Marcos, Point Loma Nazarene, and University of San Diego. San Diego is one of the most sought-after cities in the California real estate market.
Oxnard may not be as well-known as other cities in California, but it’s a great place to consider as your next hometown. With an average sale price of $818,333 in September and a 3-month decrease of $50,000 or down -6.11%, it offers access to incredible coasts and sprawling fields, along with easy access to other urban centers such as Ventura and Simi Valley. It’s also just an hour drive away from Los Angeles, making it an ideal suburban enclave in the California real estate market.
Riverside is located between its sister cities of Los Angeles and San Diego and is a great place to buy a home and be entertained. With a median sale price of $545,000 in September and a 3-month change in price of minus-$25,333 or minus-4.65%, it offers a thriving art and performance scene. While Los Angeles may have movies and television locked down, Riverside has its own unique cultural offerings.
The California real estate market has always been a hot topic, and for good reason. The state offers stunning scenery, vibrant cities, and a thriving economy, making it a highly desirable place to live. However, with high demand comes high prices, and the cost of living in California can be steep.
Fortunately, there are some cities where home prices have dropped significantly, making it more affordable to purchase property. From San Francisco to Sacramento, there are opportunities to become a homeowner in California without breaking the bank.
Of course, it’s important to do your research and understand the local real estate market before making any major decisions. Work with a trusted California realtor, familiarize yourself with the neighborhoods you’re interested in, and be prepared to act quickly in a competitive market.
In the end, the California real estate market can be challenging, but for those who are willing to put in the effort, it can also be highly rewarding. With a bit of luck and some savvy decision-making, you too can find your dream home in the Golden State.
Ready to Take Advantage and Buy Into the California Real Estate Market? Call Hector and Ana
Looking to buy or sell a home in the Bay Area? We have over 20 years of experience in the California real estate market and the knowledge and expertise to help you navigate the buying process with confidence. Contact Hector and Ana today to get started on your real estate journey.