So Cal real estate market settles in for the winter
We had a scorching hot summer and a searing hot real estate market here in Southern California for most of the past three months, but now that fall has officially arrived and with Old Man Winter on the way, the season of change is upon us. And…that’s a good thing.
Let’s face it. We all want our properties to appreciate to higher levels, but like the weather, dramatic changes tend to wreak havoc on the market. The fact that So-Cal home values rose 25 to 30 percent this year was good, but a little cooling off puts us all in a better position for the long run.
“We’ve seen appreciation rising in the double digits per month in some areas of Southwest Riverside County, which was great news for some distressed property owners, but it’s not sustainable,” says Frank Igo, Director of Development and Construction for the Rancon Group. “Now, it’s settling in at about two percent, and growing steadily, and that’s a good thing. We are still seeing solid appreciation in values, our properties are queued for development, and we are working closely with the merchant builder community to bring them on line at the appropriate time. ”
Fall and winter are traditionally the slowest months of the year for real estate, but they are good months for planning and preparation, which is exactly what we at the Rancon Group are doing. Igo is managing a team of professionals working hard to bring at least six new residential projects into the market early next year.
“Timing is everything in this business, and we are working diligently to position some of our strategically located properties for the next phase of this cycle,” says Igo. “With all the infrastructure improvements in transportation and public works that have either been completed or will be completed in the next year, the stage is set for a new wave of development, and we will be ready.”