Although the trend began before the state’s economy was rocked by the COVID-19 pandemic, it has accelerated in recent months.
âThe recovery has been heavy on housing, because our homes are more important to us than ever before. We are working on them. We are living off of them, etc., and that created this perfect storm,â said Jordan Levine, vice president and chief economist of the California Association of Realtors.
Levine believes the strength of the housing market is a testament to the strength of the state’s economy. It also signals a constant desire among aspiring homebuyers to live in California, despite the high cost of living and the state’s various problems.
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âThere have been some pretty worrying trends lately with more people leaving the state and a downturn in the overall population,â Levine said. “But if you look at the housing market numbers, what you see is that those numbers are really a relative drop from the state of nearly 40 million people of California.”
âIf you put your house up for sale at a reasonable price, you’ll get multiple offers,â said Ted Jenkins, a Riverside County real estate agent. “Honestly, most of them will be in much higher demand, $ 10,000 to $ 40,000 and $ 50,000 more, and I’ve even heard more.”
If you’re selling a house, that’s good news. However, for those looking to buy, this presents a challenge. And demand for homes statewide will continue to exceed supply for the foreseeable future.
“In November we had a budget in mind. That would be the maximum we were going to hit,” said Abhinav Guha, who is shopping for a house in San Francisco. “We certainly blew that number up and we still find ourselves dejected.”
âWe have good paying jobs and we continue to grow,â Levine said. âEven with all of our problems, which of course we still have to solve, we are creating many exciting opportunities for homeownership and wealth creation. We are optimistic that the buyer demand we see today will continue and stabilize. stronger as the overall macroeconomic picture continues to heal over the next 12-18 months. “
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