How Anaheim, CA Real Estate Will Change in the Next 5 Years

How Anaheim, CA Real Estate Will Change in the Next 5 Years

Anaheim, California, is a multicultural hub of global cuisine, dynamic activities, and vibrant community life. Anaheim enjoys a healthy economy, well-maintained parks and neighborhoods, and happy residents. After all, this is home to the happiest place on earth. As the proud home of Disneyland, Anaheim welcomes a robust tourism contingent. Locals benefit from the flush of city income, which translates to excellent resources and amenities.

But Anaheim is not merely a host to Mickey Mouse. This beautiful enclave of Los Angeles boasts plenty of dazzling qualities in its own right. One of Southern California’s most well-connected cities, Anaheim is conveniently surrounded by freeways, ensuring easy access to any sunny SoCal spot. For those who prefer to travel sans driving, Anaheim features the Anaheim Regional Transportation Intermodal Center or ARTIC. This state-of-the-art facility provides train, car, and bus services, making commuting a breeze.

Anaheim sets the stage for family life with a lovely array of pristine parks and manicured outdoor spaces. Less than half an hour from Los Angeles, Anaheim offers homeowners a tranquil respite from busy city life – while also providing a rich pool of career opportunities and universities. With so much to celebrate, there is no surprise Anaheim has a healthy real estate market. Interest in this friendly city has skyrocketed in recent years. So where is Anaheim headed, and what does it mean for home buying? Read on to find out.

Anaheim’s market history

Thanks partly to behemoth entertainment attraction Disney, Anaheim real estate has steadily appreciated over the past decade. As a suburb of sorts of Los Angeles, Anaheim also benefits from an influx of residents working in the city but looking for a slower pace of life. The pandemic affected the real estate market nationwide, and Anaheim also showed a momentary fluctuation. Disneyland, which attracts 50 million visitors to Anaheim, experienced a pause during lockdown – but numbers are back up even higher than before 2020, and Anaheim properties continue to appreciate.

The investing market

Foreclosures in Anaheim have increased, partly due to the recent enforcement of regulations. While news of foreclosures may initially seem alarming, it does benefit one real estate niche in particular. Real estate investors are jumping on opportunities to acquire foreclosure properties, meaning another boost to Anaheim’s income and property market.

The current market

To say Anaheim’s current market is strong is an understatement. With a highly sought-after selection of properties, Anaheim is setting the pace for national real estate. Today, an Anaheim home for sale goes for three times the national average. Anaheim sits solidly in the seller’s market domain, making home selling an easy and profitable venture. The average single-family home price is rising, and those numbers keep climbing. As of September 2022, Anaheim homes typically sell for over 15% more than they did the year prior – a nice boost in profit that experts expect to continue.

Anaheim’s varied neighborhoods offer something for every taste and lifestyle, and this accessibility makes the city especially attractive to home buyers – especially those looking to circumvent the inflated home prices in Los Angeles. From the stunning Mediterranean estates perched on the hillside of the Anaheim Hills enclave to affluent, retro-chic Westmont, Anaheim offers an incredible array of neighborhoods for potential buyers.

Interest rates

Recent news of the Federal Reserve increasing interest rates has the real estate world buzzing. The housing market has seen a dramatic fluctuation in interest rate levels, especially in recent years. Rates in the low double digits were the standard for decades and finally peaked at a record rate of 16.63% in the 1980s.

An interest rate is the amount of money a lender charges a borrower for a loan. It is understandable why the interest rate discussion is so prevalent – a higher interest rate means a higher monthly mortgage, so home buyers could be dramatically affected if interest rates increase. Investors also have a stake in the game, as their profit margins could be significantly influenced depending on their method of financing.

From the incredible highs to the historic lows of the pre-pandemic market, interest rates have been a constant source of discussion. Rates were already declining throughout 2019, but in response to the pandemic, the Federal Open Market Committee held rates steady at record lows to encourage movement in the market.

Now, interest rates are on the rise again. The Federal Reserve approved a slight increase this past March. This increase is the first in more than three years, and buyers can expect more to come. However, increased interest rates are no reason for real estate investors and homeowners to worry. The slightly elevated mortgage rates are creeping up ever so slightly, beginning at a quarter of a percent. What does this mean for Anaheim’s real estate future? Not much – this coveted city is well-established as a hot market and is unlikely to see a negative change. From viable investment properties to quiet residential streets and highly sought-after housing, Anaheim is on the rise.

Anaheim’s future

The future is bright for this well-rounded city. The Disney allure continues to attract visitors, providing endless opportunities for rental investments and Airbnb vacation spots. Mickey’s permanent presence means Anaheim’s economy will steadily grow, providing investors and homeowners with lucrative opportunities. The schools in Anaheim are outstanding, and the town’s reputation as a family oasis continues to attract home buyers. The influx of new residents brings new ways for home buyers to invest in the already thriving market.

The need for housing inventory continues to increase, and Anaheim multifamily homes for sale are in high demand. Rentals and vacation homes generate a consistent flow of income, and investors are expected to see lucrative returns on their investments.

The luxury home market is another feather in Anaheim’s real estate cap. Luxury homes are in high demand, and demand is expected to soar in the coming years – especially as Los Angeles real estate skyrockets in price.

If you are interested in selling or investing in Anaheim real estate, contact the Pompey Group today to get started. Now is the perfect time to enter this quickly changing market.

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