California coastal cities are showing dramatic improvement in the real estate sphere, according to the Wall Street Journal. Though the state of California as a whole is still suffering from an ailing economy, coastal regions like the Bay Area and the entertainment Mecca of the greater Los Angeles area have enjoyed decreased unemployment rates and stabilizing housing prices. The good news is attributed to the employment lure of Silicon Valley in the Bay Area, and the large entertainment community in Los Angeles.
Previously, these cities experienced a significant exodus of people affected by dragging unemployment rates and a tidal wave of foreclosures and housing woes—people who eventually sought refuge in the more affordable inland cities. Now that the tides have turned for many Silicon Valley and Los Angeles businesses, median housing prices are rising with the influx of returning employees.
Inland cities like San Bernardino and Riverside in Southern California, and Fresno in Northern California have seen decreases in their region’s median home prices. The median home price in Central Valley in Northern California decreased 11.3% to $142,000 since December, while San Bernardino and Riverside showed a decrease of 10% to $180,000. In contrast, the Bay Area’s median home price increased 15.2% to $380,000 in December, and the coastal cities in Southern increased 7.5%.
What does this mean for potential homebuyers in California? If you plan to work in either LA or Silicon Valley, jobs and a healthy housing market may be in your future!