Real Estate in the Inland Empire has been making news for a while. It is because we have a very unique market in relation to the rest of Southern California. Rentals, investor flips, and owner occupied property are accessible to almost anyone. The same story does not ring true in almost every other part of California. On January 7th, Forbes.com, pointed out that Riverside, has experienced significant job growth over the last 12 months, and that such growth often paves the way for real estate market gains. I have blogged on why the job market helps real estate and there are obvious advantages. A strong job market puts more people in a position to buy a home and the security to maintain it. That’s the trend we are seeing across much of Southern California at the start of 2016, but particularly within Riverside and San Bernardino.
The nation as a whole has experienced some job growth over the last year, it was about 2% from November 2014 to November 2015. Although some metro areas have exceeded the national average. Riverside is one of them, having posted a 3.5% rate of job growth during the same period. This and other trends are most likely going to boost the Inland Empire housing market in 2016. According to Zillow, home prices in Riverside, California rose by almost 6% over the last 12 months. Their positive prediction calls for another 6% increase over the next 12 months. In this regard, the Riverside housing market seems to have countered the national forecast for rising prices slowing down. The belief among economists is that home prices nationwide will rise more slowly in 2016, compared to 2015. But Riverside and other high-performing California real estate markets could be an exception to the rule. Such markets could easily outperform most other metro areas in 2016, in terms of home prices and sales gains. We can only keep our fingers crossed.
Since we are talking about the Inland Empire, Riverside isn’t the only county looking strong. The San Bernardino housing market is looking good as well. Zillow offered a similarly strong prediction for the San Bernardino housing market. By their estimation, home prices in and around the city will rise by around 7% in 2016. That’s much higher than the forecasts that are being offered at the national level which is another testament to the rapid growth of the Inland Empire real estate market. The rise in employment plays an important role in this above average real estate prediction. According to the State of California EDD, the Inland Empire gained more than 46,000 jobs during the 12-month period from November 2014 to November 2015. This sets the stage for more home buyers in 2016. Increased housing demand should put a positive trend on home prices, especially if it grows faster than supply.
In conclusion, this is proving to have been and continue to be a great time to buy, sell, or invest in real estate in this area. If you are in any field related to real estate, including construction, you are going to have some pretty good job security for a while. If people buy and people stay, the growth can stimulate this area and move into the areas that need that type of positive development.