We have, as a nation, failed to build enough housing for people who want to buy a home, especially affordable homes. 😥 This is particularly true for California. And the rapid rise in interest rates caused home builders to pull back all of last year. They stopped building and had massive sales to unload all of the unsold inventory as buyers were backing out of their contracts. 🏠
We have homeowners who want to downsize or upsize, but due to high mortgage rates, chose to stay in place rather than make the move. The people who had to move, due to job relocations, retiring to others areas or selling investment properties are the ones who are fueling the real estate market.
These two factors have shrunk the inventory dramatically, especially here in California. And this dramatic decrease in inventory and the gradual decrease in rates over the past few months have brought buyers back into the market. On top of that, in California, programs like the California Dream for All downpayment assistance program to help homebuyers get into their first homes, which will fuel more demand. 🔥
We have more interested buyers now then inventory of homes to buy. We have a housing shortage, so the prices are going up again. 📈
Depending on where you stand, this could be good or bad…… 🤷
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