Wednesday, December 20, 2006

"People leaving"

If you decided to sell your house and move, would you move to another location within the state or would you decided to look at other sates?

For the first time in 10 years, more people decided to move from California to another state than did people living in other states move to California. According to a recently released report from the California Department of Finance, California recorded a net domestic loss of 29,000 people last year. It was the first year since the mid-1990s that more people moved out of state than moved into the state. Our total population did increase by 400,000 but the increase was attributed to births, and legal and illegal immigration from foreign countries and not from the other 49 states.

Usually more people move into California than move out but cashing-in on large increases in home equity was too attractive for thousands to pass up. The most popular destinations states for Californians were: Arizona, Nevada, Texas, Washington and Oregon.

A net loss of 29,000 people isn’t something that the California Department of Tourism will want to publish in their “Golden State” brochures but the outgoing migration of 2005 was the result of a very good economy and booming housing market. In 1994 the state reported a net loss of 350,000 (workers, taxpayers, employers, homeowners) people. It was the result of a severe recession and record job losses that resulted in a depressed housing market. It appears that if the economy is too good, people will move out of state and if the economy is poor, people will move.
Many Californians, who sold their properties in 2005 and moved or retired to other states, purchased their real estate during the last housing recession in 1995. Then sold for a record profits. Every situation is different but historic cycles have a way of repeating themselves.


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