Even for those who work in the real estate and development industry, the news reported a few months ago by the San Bernardino Sun in May 2020, just a couple of months into the coronavirus pandemic. While existing home sales during April 2020 posted their lowest number since 2012, there was a bright spot in terms of new construction sales.
The State of Construction in 2020
Seasoned construction and real estate professionals can tell you that the aforementioned statistics are not so surprising. The market for new homes is always strong in California for various reasons, and you can always count on prospective buyers even during downturn periods. To answer the question that serves as the title of this article: Yes, you can still make money with spec homes in California, but you have to play your cards right.
Investing in Construction in Southern California
As one of the most expensive housing markets in the United States, Southern California is a great place for spec home investing. This region has always managed to attract wealthy individuals from all walks of life. You have probably heard about Chinese real estate investors who arrive with suitcases full of cash in search of condo units that go back on the market not long after papers are signed at the closing table; these are the kind of investors who always keep some money aside to purchase a new property they can call their own.
As of October 2020, many wealthy families in the United Kingdom were packing their suitcases as they watched the news in dismay. With a no-deal Brexit scenario becoming more likely, quite a few of these families considered relocating to California, a part of the world that tends to appeal to well-off British individuals moving abroad.