Real estate in California has seen challenging times: From the SBV crash to the rounds of tech layoffs, various factors have affected demand and investment in housing throughout the state. But Kiryl Mikhalkevich sees several trends that could help stabilize the housing market and lead to new opportunities for realtors and homebuyers.
Time on the market has nearly tripled since early 2022, and inventory numbers are rising once again after a decrease. However, Kiryl Mikhalkevich notes that growing inventory tends to come in waves as pressure builds up in the real estate market before releasing a new wave of demand.
Higher inventory levels can attract the attention of investors and buyers who want as many choices as possible or are looking for a very specific housing situation that’s not always available when the market is limited.
Dream for All discussions continue in the legislature as the governor demands to fund the payment assistance program. That’s more likely than ever, and it could open a new channel for realtors and first-time homebuyers. This program focuses on funding for down payments, which, like FHA loans, are designed to help people with steady incomes afford homes even if they don’t have much cash. Given the overall issues with pricey renting, this could open up a new market of renters seeking more stability.
It may sound strange, but Disney is increasing their investment in real estate development. While Kiryl Mikhalkevich points out that this is still limited to a few developments, it’s very interesting that Disney is moving more into the housing market and helping develop residential areas. The next question is – will more California corporations follow suit with investments in development and new housing? This could also have long-term impacts on the market.
There’s an interesting amendment brewing in the California government, a change to help guarantee housing in the area. While this measure is designed to help deal with the state’s homelessness problem and prevent certain rental evictions, its effect on the real estate market could be long-reaching. That could open up new opportunities for real estate workers, along with many questions about how subsidies and public housing might work.
As prices have fallen in key areas across the state, another trend has started to rise: The advent of deal hunters who are well aware of how much prices have shifted and are looking for deals or homes that they could not otherwise afford. This provides a different kind of business for realtors willing to focus on finding and acting on deals ASAP, and options for homebuyers who don’t mind relocating to an area where prices have quickly fallen. Mortgage rates remain a challenge and are likely to rise slightly throughout 2023, but they should start to stabilize and even fall over time.