Well, prices did drop, but eventually the price became supported by two things. First, the cost to build a relative home, and secondly was how much the home could rent for on the open market. Obviously, with the cost of the city lot taken out of the equation, the home has a value that can be derived by the cost of a building permit (which can be $50,000 or more) plus the actual construction cost (usually based on the square footage, $100-$300.)  The second support of prices became what the home could rent for given the current economy. If the house would rent for more than what the cost of the money to buy the home was, then investors were quick to figure that out and go forward with their investment. Of course the rental market is largely dependent upon not only vacancy rates, but more importantly in this market upon wages. If jobs are scarce, then unemployment is high which means that wages drop because of the over supply of labor. A drop in wages means a drop in spendable income, which translates to lower rents. Lower rents mean that the price of the home needs to be lower to make it “pencil” for an investor. Once again, another self-fulfilling prophecy.

So, what does all of this mean? Well, if you own homes in Hollister ca, then you want to do your homework prior to unloading it in this economy. Of course, if you are selling under duress, then you may not have much choice. However, if you are an owner with some staying power, you need to weigh all of your options before putting the home(s) on the market. First and foremost, does the home “pencil?” If the home is a making you money (or even breaking even) you might want to seriously consider hanging on to it until there is an upswing in your equity. Keep in mind, that the state of California increases in population 1,000,000 every four years. Yes, people are leaving, but the net increase is still 1,000,000 every four years. That is one out of every 8.5 people in the United States that now live in California. Those people have to live somewhere, so keep in mind that the demand for California real estate is on the increase regardless of the economy right now. Secondly, if the house doesn’t “pencil” as a rental, how does it effect the rest of your finances? Will selling it (or short selling, foreclosure, etc.) affect you in a negative of positive way in the short term? What about the long term (credit hit, etc.) Sometimes its better to ride out the storm because the “over-all” effect is far less than the short term pain of working an extra job, or dipping into savings for awhile.

Hollister Ca homes for sale are not much different than anywhere else right now. Yes, central California was hit pretty hard, but chances are owners of these homes live and work right here in the central coast where wages are higher than many parts of the country as well. So, relatively speaking a Hollister sale is much like a sale anywhere else. What is important is that sellers weigh all of their options before simply calling a Realtor to list their home on the MLS as a short sale or “reduced” price sale. There may be better options. Hollister properties are well worth the effort. They’re not making more real estate.