Homes in Modesto, California, and Other Central Valley Cities More Expensive Than Usual

A report by the College of Business at Florida Atlantic University states that homes in Central Valley cities in California are now about 30% more expensive than their actual value, especially in metropolitan areas like Modesto, Stockton, and Sacramento.

To cite just one example, today a property on Kruger Drive is listed at a price close to the average for a house in the city of Modesto, which is around $460,000, while the previous value was closer to $350,000, showing us a price increase of more than 30%.

Some experts say there could be several factors for the increase in these home prices in Modesto and other Central Valley cities in California. One of these experts is Daniel Del Real, a housing specialist and real estate agent in the area, who says that although unprecedented price increases have occurred in Stanislaus County, this increase is not a surprise, as he considers this the basic dynamics of supply and demand, especially given the current shortage of available homes. He said, “If there is an oversupply, prices will go down. If there is a shortage, prices will go up.”

Del Real also attributes this phenomenon to the large influx of people from outside the city or even the state who are moving to the valley to seek housing, which exacerbates the housing shortage problem. He warns that the problem will continue to worsen if new constructions are not developed and suggests that the city could encourage builders and contractors to increase construction within city limits.

Jessica Hill, Director of Community and Economic Development, says that the city of Modesto is already taking steps to address the rising home prices, with new projects being reactivated, and about 4,000 of them are currently in progress.

According to the Attorney General’s Office, to reduce costs and meet demand by 2030, California needs to build approximately 2.5 million new homes. However, the state is expected to build only 100,000 homes this year.

Available Foreclosures:

Modesto: 150 homes available.

Stockton: 200 homes available.

Sacramento: 180 homes available.

By Elías DaSilva | 14 de Noviembre de 2024.