SoCal’s Real Estate Dilemma: Shortages and Surging Prices Cause Headaches for Buyers and Investors
variety.comKathy A. McDonald It’s hard out there for homebuyers. Southern California’s residential real estate prices are at all-time highs and continue to increase in every sector of the marketplace.
A combination of factors led to this unprecedented economic reality, which is causing pain for first-time buyers who can’t afford to enter the market, for those wishing to move to scenic, less urban locales due to the acceptance of work-from-home and for investors faced with skyrocketing acquisition costs.Historically low mortgage rates and tight inventory has resulted in a scenario in which demand overwhelmingly outstrips supply for single-family homes.
Although mortgage rates are ticking up and hundreds of thousands of Californians moved elsewhere, the competition remains brutal.
Home as sanctuary, workplace, school and entertainment center became fundamental throughout the pandemic; buyers at elevated price points were willing to spend more to find a suitable abode in a desirable location that met these essential needs.
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