California is a great state to live in, whether you are a young professional, aspiring entrepreneur, or a retiree looking for a dream life during your golden years. The incredible weather, exciting lifestyle, work opportunities, and stunning locales are the reasons making the state a hot favorite. Not surprisingly, one in eight Americans resides here, and countless people move in year after year. 

Whether you want to buy a home in California after relocating here or plan to upscale as a resident, you should know the market well. Since the state is populous, you need to be ready with a big budget. The good news is that predictions show that 2023 will be a buyers’ year. Prices will likely drop to the lowest levels since the pandemic boom. 

Despite the drop, the median price of a home in California is $758,600 in 2023. That’s a huge number for someone looking for an affordable property. Fortunately, you need not give up on the dream of living in California only because of the whopping housing prices.

Here are a few actionable tips to help you find an affordable abode in the state.

Crunch the Numbers for a Realistic Budget

Before embarking on your home-buying journey in California, check what you can actually afford. The best way to do it is by crunching the numbers and deciding on a realistic budget for home buying. It depends on two factors: how much down payment you can manage and how much you can comfortably pay as a monthly mortgage amount.

Your current income, expenses, and savings can give you a fair idea of both. Seeking an expert opinion is a good idea, as a seasoned financial advisor can help you with the calculations and estimates. Dig deep into the tax implications and hidden costs of home buying, such as agents' commissions, relocation expenses, and paperwork. Once you sort the finances, you can start looking for a dream home within your budget.

Choose Your Location Wisely

The housing market in California is complex, with varying prices and trends across different locations. Despite a downward trend in 2023, home prices in Los Angeles grew by 3.4%, the Bay Area increased by 4%, and Central grew the most at 4.8%. If you want affordable homes for sale in California, skip these locations and look elsewhere.

Century Communities recommend looking for new homes with open-concept layouts and stylish finishes. You may worry about affordability, but low-interest mortgages can be your saviors. Also, choosing your location wisely helps. A little flexibility can save you big money, so consider relocating to a different city or neighborhood.

Keep Track of Trends

Besides considering location-based pricing trends, you must also keep an eye on the changes in the market. The average sale prices of homes in the same location may vary during different times of the year. You can be a savvy buyer by skipping buying in the peak season and looking for deals during the slower months. 

According to surveys, home prices often dip during the late fall and winter because most people focus on holidays and fewer go home shopping. You may negotiate a lower price with a seller holding out for more money in the summer. Check the local market updates throughout the year because things are unpredictable in the real estate industry. 

Condos Are Ideal for First-Timers

Let’s accept that the housing market in California is expensive even after a downward trend this year. But it doesn’t mean you should settle for a rental property or consider moving to another state. As a first-time buyer, you can look for a condo or townhome to break into the real estate market. You can always flip homes and move to a bigger one later.

You can easily find condos in a price range of $300,000s if you collaborate with a reputable real estate specialist, search diligently, and keep an eye on the current inventory. You may get a sweet deal and enjoy condo living until you are financially ready to move to a better home or a posh location. That way, you can sell your condo and use the money as a down payment. 

Conclusion

Buying an affordable home in California is not an impossible dream, even as the state has one of the priciest housing markets in the country. Strategic planning and financial preparation can take you a step ahead toward your dream home in the state. Most importantly, look for a reliable real estate partner who can help you explore the maximum number of options within your budget.