California Loans & Mortgages

California : Home Loan and Real Estate Trends in The Golden State

By Sharon Secor

Direct Lending Solutions Staff Writer

California, located on the Pacific coast of the United States, is its third largest state and its most heavily populated. Nicknamed the Golden State, California is home to diverse geographical areas that include forests and farmlands, deserts and steep mountain ranges. The climate in the state ranges from sub arctic in some areas to Mediterranean in others, varying as widely as the terrain.

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The highest peak in the continuous United States can be found in California’s Sierra Nevada mountain range. Temperatures drop to arctic levels in the winter months in this mountain range, and it is home to a number of small glaciers. California boasts an abundance of lush forests, covering approximately 35% of the state, more than every state except Alaska. An additional 25% of California’s land surface is comprised of hot, arid desert lands that include the Mojave Desert and Death Valley. The Central Valley contains rich agricultural lands, and freshwater lakes are abundant in the state. Major metropolitan areas in the state of California include the San Francisco Bay area, San Diego, and Greater Los Angeles, all located along the coast.

Originally inhabited by more than seventy groups of Native Americans, California has been home to a remarkably diverse population throughout its history. First colonized by the Spanish Empire in 1769, California became part of Mexico after it declared independence from Spain. After a very brief period as an independent republic in 1846, California officially became a state in 1850.

California is home to a thriving and diverse economy, earning a rank among the ten largest economies of the world. California’s largest industry is agriculture, centered primarily in its Central Valley region, which grows approximately one third of the nation’s food. Los Angeles is the home of the state’s world famous entertainment industry, and San Francisco is a leading financial and cultural center. High tech industries and Aerospace are also large segments of the California economy.

Home purchasers in California will find that the current real estate trends show a market that is weighted to the benefit of the buyer. Housing stock is plentiful, with June 2007 statistics showing a 10.1 month inventory, up from 6.1 in June, 2006. The statewide median price for existing single family detached homes in California was $594, 260 according to June 2007 figures, and the median price for existing condominiums was reported at $439,850. Homes listed for sale in California are staying on the market longer in 2007, an average of 51.7 days, rising from the 2006 average of 45.3 days. Interest rates for California home loans remain low, averaging 6.66% for a thirty year fixed rate mortgage during the month of June 2007.

California has something for everyone, from the laid back lifestyle of the farm towns and famous wine country to the fast paced life in its busy urban centers. The current buyer’s market in California real estate and affordable California home loan rates make it a great time to shop for your dream home, whether it is LA excitement you crave, or the tranquility of the lush Napa valley region.

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