California’s Real Estate Market Pricing

Real estate in California experiencing one of the most significant pricing changes in State’s history and as a real estate agent you may wonder, “How low can we go?” To answer that question, first we have to remind ourselves that real estate market activity and pricing is determined by the buying power of the defined market.

With increase in unemployment numbers, and reduced income as well as financial uncertainty we have a significantly reduced real estate purchasing power index in the state. When people are not sure about their financial future home buying is not the first thing on their mind.

Another factor driving real estate pricing down is the fact that we have a huge real estate inventory on hands. Oh where are the golden days of California’s real estate boom? Foreclosures, short sales, newly developed properties that barely attract interest of the shrinking market of prospective buyers, all these factors contribute to bloated MLS listings and when you have homes sitting on the market for months, it is inevitable that price adjustment will occur.

Thanks to California’s tax credit extension, some of the home buyers will be awarded with an opportunity to get $10,000 tax credit toward a home purchase, but this is not a major contributor to real estate pricing increase.

Newly passed Healthcare bill doesn’t promise any improvements to California’s small business which is a core of our economy. According new legislation an employer will have to pay for employees’ government health coverage. This will impact many small businesses and more unemployment and wage reduction will follow. This will result in lesser numbers of active real estate buyers and more likely an additional fall of the already low prices on homes.

As a real estate agent you are faced with a dilemma of reduced commissions due to reduced real estate pricing. Our policy of not charging our agents any recurring broker fees and paying a full 100% real estate commissions to all agents allows our realtors to maintain adequate income standards even in these harsh market conditions. We offer 100% commissions to all real estate agents in Los Angeles, Orange, Riverside and San Bernardino counties from the very first day of employment. We provide with personal broker support and tools necessary to successfully conduct your business.

Even let’s say something magical will happen tomorrow and real estate prices will skyrocket along with a demand, you as a real estate agent of Dynasty Online still will get paid 100% for every home you sold. That’s something to consider because at one point you may consider retirement.