The supply and demand inequalities continue to drive the median residential real estate prices higher across California. Even though added housing stock would be advantageous to handle the pent-up demand, builders are having issues finding skilled labor, having supply chain issues getting appliances and building materials, and dealing with substantial governmental red tape, delaying projects.
Elements to keep our eyes on that will change the real estate market dynamics? When the Federal Reserve curtails Quantitative easing (that’s need artificially lowering interest rates), pricing gets high enough where affordability levels curtail activity, mortgage forbearances expire and owners decide to liquidate, new taxation from state or the Fed affects estates or ownership, the Federal Government offering buyer tax credit to purchase …
Bottom line it’s all supply and demand. There’s no indication that there’s a “bubble”, but there may be fluff in pricing on those buyers bidding substantially over “market value” for properties. The market is unhealthy. Added inventory and slowing property value appreciation would be healthy.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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