Housing market heating up in Southern California?
The real estate market in Southern California is heating up, World Journal (世界日報) reports. Some brokers and prospective buyers say that many homes have been sold as soon as they were listed on the market.
Housing prices in the San Gabriel Valley have been increasing significantly due to mounting demand and short supply, according to World Journal. Alhambra resident Miss Fang said that she had been looking for a house online in recent months and waited for the right moment to bid. But she did not expect the housing market to warm up so quickly.
“Many houses were marked as ‘pending’ and ‘back up offer’ as soon as they are put on the market," Fang said. "The buyers did not even have the space to bargain."
A Chinese realtor told World Journal that the market might be hyped up by some investment groups. These investors bought the foreclosed homes at low value and sold them at a higher price after renovations. “Nearly 70 percent of the homes listed on the market recently were renovated foreclosure houses, “ the realtor said.
The supply of houses is still low now, but the high demand drives up the price. Oversea investors also play a role in heating up the market, World Journal reports. According to economist Huayao Huang, the relatively low housing loan interest rates, inflation, and fluctuating stock market has made many local and overseas investors believe that investing in the real estate market is relatively safe.