Because there is a constant movement of people into the state, there is an everpresent need for housing.  This is why many real estate investors have not yet pulled out of the California real estate market.

In a market that is shaky like the California real estate it is important to watch housing trends.  These trends will give the information that is needed in order to determine the right time to sell your holdings and/or to set your sights elsewhere. 

Home price growth rates and sales rates are two of the biggest factors to pay attention to.  It is also of use to know the average market time for California real estate.  The shorter the market time, the better.  If the average market time increases each reporting period, it is not wise to enter the market.

When investors begin to experience longer than average turnaround time on properties it is a sign that is time to conside revising your marketing strategy.  It might be necessary to do some price adjusting in order to sell the house.

Some of the cities that have seen signs of slowing in the near future are Sacramento and San Diego.  Investors in these markets are advised to sell their properties as quickly as possible to avoid losses.  Keep in mind that, at this point, it might not be possible to salvage any profits from current properties.  It is more important to avoid huge losses as these markets continue to decline.

California real estate investors that have condominiums on their current portfolio are safe for the time being.  There aren’t any strong signals that this market is slowing with the housing market.

Prospective investors may be safe for the time being to invest in Oakland, San Francisco, and Riverside.  These markets are still showing signs of growth.  Since prices are in the rise in these areas, investors should get in and out of these markets as quickly as possible.  While there are guaranteed gains for the near future, there is no guarantee that the potential for gains will be long lasting in these areas.