Yolanda Dawson, Ed.D.
Exhausted and frustrated, some home buyers have been losing hope in the purchase of their first home. Many are asking, “What’s really going on in this market, and will things level out?” These are great questions, and there is a genuine concern among prospective buyers on what to do next—to purchase now or later. The reality is there are many factors that impact the purchase of a home, especially in Southern California.
The location of Southern California is prime-time, high-demand! Great weather, beautiful coastal beaches, camping, skiing, hiking, major attractions, celebrities, opportunities, diverse cultures, and the list goes on. In all of California’s cornucopia of beauty and luxury, we have seen historically low interest rates, limited inventory, rising home prices and fears of not owning a home have majorly impacted the sales of new construction and resales.
Some homes have been quickly being snatched off the market by investors, while buyers have felt the pressure to quickly make an offer—above and beyond the asking price—just for the opportunity to have their offer accepted. Some home buyers are choosing to wait and lease. However, their leases have also continued to rise at a substantial rate. This renting-waiting period can cause many potential home buyers to lose their purchasing power, missing an opportunity to lock in a lower interest rate and eliminate ever-increasing rents.
In the midst of buyers fears and frustrations, sellers are preferring to close quickly: to accept the highest offer and close with little or no repairs. It truly is a sellers’ market, as their profits are far greater than their original purchase. The reality is that the real estate market is cyclical. The prices of homes are not going down anytime soon: sellers are sticking to their preferences, and home buyers that can afford to purchase have been buying their homes to take advantage of historic low interest rates.
Potential homebuyers should keep their composure. To learn about buying strategies that can help someone level up from renter to homeowner in the realities of today’s market, check out my webinar. In it, I'll share the realities of the constantly changing current housing market and how these realities impact buyers, sellers, and investors.