It might be because California is one of the country’s largest states or one of those hardest hit in the financial crash a few years back, but either way, quite a few of its cities are about to undergo drops in housing price values again. Salinas is one of those cities.
Moving to Salinas, California about ten years ago was probably an exciting adventure for anyone purchasing a home – a great place, a great investment. Just 25 miles south of San Jose and nestled on the coast, Salinas is a lovely place. But, starting back in 2006, the value of home prices in the area (about 125,000 of them) has dropped by over 61%. If you don’t know, that’s the fourth biggest drop from the peak price in all U.S. cities.
Those people still living in Salinas might want to hold onto their homes rather than try and sell now and move to another town. Why? Experts believe that home prices in Salinas might drop an additional 12% by the second quarter of 2012. So, homeowners that can might want to hang onto the house till the market settles down.
Part of the problem is that the unemployment rate in Salinas is at almost 13%, which is much higher than the national average, which is just above 9%. The news isn’t promising, either. Several major employers in the area are continuing to lay off employers, which means home values may move even lower than expected.
What does this mean for people wanting to move to the area? Well, now might be the time to buy. With prices depreciating so much, buyers may find a great deal. But, in order to get a return on that investment, plan to stay there a while.