Ken Slaught On California’s Market Trends in 2018

Many West Coast buyers are finding that they need to pay excessively high prices for older, less fashionable homes.

Santa Barbara, CA - February 14, 2018 /MarketersMedia/ —

Expert real estate agent Ken Slaught has found that the key to success in California’s real estate market is not solely in one’s ability to manage a large team or have a wide breadth of knowledge about the current market, but lies in the pure facts of what the state has to offer. As a key figure in the Southern California residential, commercial and industrial property scenes for more than thirty years, he has weathered unexpected variance and bested trends. With his wide-ranging experience and understanding of the acquisitions that shape the state he has called home since childhood, Slaught shares his insights about the unique nuances of the California market; these distinctions include the ability to recognize purchase opportunities and pitfalls, and astute knowledge of the myriad extraneous influences that affect the Golden State.

With a white-hot housing market, many West Coast buyers are finding that they need to pay excessively high prices for older, less fashionable homes. Ken Slaught notes that costs have been steadily climbing since 2008, and common reference, the Standard & Poor’s Case-Shiller home price index, reveals that Los Angeles home prices rose to their highest point during April of this year since October 2007. Having moved beyond mere recession recovery, Southern California’s larger metropolitan areas are closing in on their former peaks. Slaught says the turnaround can be attributed to a number of factors, which include interest rates, job growth and supply and demand. As current 30-year, fixed-rate mortgages are hovering around 3.5% or less, these enticing numbers nearing 3.31 percent (the record low hit in November 2012) are pushing many toward buying. These historically low rates, coupled with strong employment numbers, such as a 2.4% gain in Los Angeles County and a 3.5% rise in Orange County, makes it clear just why values have appreciated in an extraordinarily fast-paced manner. And although home prices vary considerably statewide, the inflated asking price of higher-end homes outpaces all other states with the exception of Hawaii. The feverish demand for housing cannot currently be met by the slim supply available, with many first-timers forced to opt for condominium-style units: obtainable and within a more modest price range.

Other factors influencing the current situation that are particularly Californian in nature can be traced back to a general scarcity of land in desirable locations. Undeveloped land costs are prohibitively high, especially within the Los Angeles and San Francisco areas. Ken Slaught points to regular delays in construction of new project, which result in many owners choosing to stay put and renovate, as Proposition 13, the 1978 amendment to the state’s constitution, has made relocating a daunting choice. Though the law states that future property tax increases are capped at 2% based on 1975 assessments, the exorbitant exception takes place when a sale is executed, and a property is reassessed based on its current sale price. Ultimately, yearly totals are framed by purchase figures that vary monthly, as demand in California shifts seasonally (with most homes moved in June and a small increase at year’s end). Also affecting yearly totals are asking prices, interest rates, consumer confidence, negative equity status, quantity and quality of homebuyer jobs, disposable income, saving rates, and elements like major foreign investments.

Since founding Investec Real Estate Companies in 1983, Ken Slaught has led the firm through the execution of more than $1 billion in property transactions. As president of the most successful real estate management enterprise in Santa Barbara, he has been primarily responsible for establishing the company’s strategies and policies, determining its asset class allocations and overseeing its investment decisions. Mr. Slaught is a member of the California Association of Realtors, the Building Industry Association of Southern California, and the Santa Barbara Rental Property Association; he is also affiliated with the Institute of Real Estate Management and the Urban Land Institute. The long-time resident of Santa Barbara is actively involved with a wide range of philanthropic organizations and remains devoted to strengthening all aspects of his community.

Ken Slaught - Founder & President of Investec Real Estate: http://kennyslaughtnews.com

Ken Slaught - Investec Founding Principal & President: http://www.investecrealestate.com/kenny-slaught-2

Investec Real Estate: Santa Barbara Commercial Real Estate: http://www.investecrealestate.com

Contact Info:
Name: KSN
Email: kenny@kennyslaughtnews.com
Organization: KennySlaughtNews.com

Source URL: https://marketersmedia.com/ken-slaught-on-californias-market-trends-in-2018/300892

For more information, please visit http://www.kennyslaughtnews.com

Source: MarketersMedia

Release ID: 300892

More News From Bajet Harian

IMF-World Bank ends meetings with call to brace for risks

Oct 15, 2018

NUSA DUA, Indonesia — Global financial leaders wrapped up an annual meeting of the International Monetary Fund and World Bank on Saturday by urging countries to brace for potential risks from trade disputes and other tensions. The meetings in Bali, Indonesia, this week were overshadowed by a spate of financial market turmoil and by the threat to global growth from the trade clash between the U.S. and China over Beijing's technology policies. The International Monetary and Financial Committee, which advises the IMF's board of governors, issued a communique on Saturday urging countries to keep debt under control, engineer policies to...

The Latest: IMF's Lagarde planning to attend Saudi meeting

Oct 15, 2018

NUSA DUA, Indonesia — The Latest on the annual meeting of the International Monetary Fund and World Bank in Bali, Indonesia (all times local): 3:55 p.m. The managing director of the International Monetary Fund, Christine Lagarde, has said she still intends to attend an investment conference in Saudi Arabia later this month despite concerns over the disappearance of journalist and U.S. resident Jamal Khashoggi. Khashoggi disappeared after he entered a Saudi consulate in Istanbul, Turkey, more than a week ago. The Washington Post cited anonymous sources as saying Turkey's government told U.S. officials that it has audio and video proof...

Philippine, Vietnam leaders discuss disputed sea boundaries

Oct 15, 2018

MANILA, Philippines — Philippine President Rodrigo Duterte and Vietnam's prime minister have discussed efforts by their countries to delineate their maritime boundaries in the disputed South China Sea, most of which is claimed by China. Duterte said Friday, without elaborating, that he told Prime Minister Nguyen Xuan Phuc in a meeting in Indonesia that such boundary talks may take longer because the Philippines is still establishing its continental shelf limit, or the country's outermost boundary. "I told him that in due time, but we will take a longer period for we have to establish even our continental shelf limits," Duterte...

World markets claw back losses on possible Trump-Xi meet

Oct 15, 2018

SINGAPORE — Global stock indexes rose Friday after their recent sharp declines on hopes that U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, will meet at the Group of 20 summit next month. The Wall Street Journal reported that the White House had informed officials in Beijing that it would go ahead with a meeting in Argentina. It cited unidentified sources from both sides. The aim was to find a way out of the impasse over trade that has led both countries to impose penalty tariffs on billions of dollars of each other's products. Chinese foreign ministry spokesman...

UN secretary general visits quake-hit Indonesian city

Oct 15, 2018

JAKARTA, Indonesia — U.N. Secretary-General Antonio Guterres on Friday visited an Indonesian city shattered by an earthquake and tsunami to personally assess the impact of the disasters. Guterres is attending the annual meetings of the International Monetary Fund and World Bank on the island of Bali. He paid a visit to the hard-hit city of Palu on Sulawesi island, where Indonesian Vice President Jusuf Kalla welcomed him at the partly damaged airport. They were briefed by the country's top disaster official, Willem Rampangilei, and Central Sulawesi Gov. Longki Djanggola on the damage caused by the Sept. 28 quake, which triggered...