Equality isn’t always fair.
It’s true. Home prices are high because of you who have bought homes in the last 10 years, including me, and the buyer’s who are writing offers now. That is not meant to be condemning, it is just the truth. Everyone wants a home NOW, and when you have 25, 40, and last I heard, 122 offers on a home, prices get out of hand. Isn’t that called inflation? Anyways, that is because people’s emotions are out of hand. I imagine some people are moving to different areas, and even out of state, but that isn’t alleviating the upward pressure on home prices.
What happens on black friday? Aside from somebody getting murdered over a pair of Air Jordan’s in a cold, dark parking lot, people rush to the stores to take advantage of the sales. Well, money is on sale right now. It’s cheap to borrow so a’borrowin’ we will go. Investors, first time buyers, second home buyers and people wanting to move up are charging through the store elbowing each other for the last pair of something they probably don’t need. But this is different, everyone does need a home. It’s tough and that is what will be addressed soon, naturally, or through legislation, which is still natural.
We have a housing crisis. That is fact. Sacramento is starting to look like LA and all I see is incentives for more people to buy homes. Tax credits, loans for people with low FICO’s, which all add to the lopsided demand on supply. That is clearly a political move. But what I don’t see alot of is incentives to actually fix the problem, which is to help the builders add supply. As inefficient as the government is, they are not dumb. Maybe they don’t want the problem fixed. An iquiring mind should eventually come to a logical conclusion. Subsidizing land cost and allowing the lumber industry to expand would help this issue. Is this sense, home prices are high because of you and me not electing the right politicians.
But no one knows what to expect for the short term. It’s kinda like the polar opposite situation from 2008/2009 but with the same feeling that change is coming. Does that even make sense? What does make sense these days? Not much. Can we still say “what goes up, must come down?” Is that offensive? Whoever is waiting for the top of the market to sell their home, raise your hand. OK, you people all need to sell now. You might as well, You probably only have about another year left of this before affordability completely erodes and inventory starts to pile up. The law of supply & demand is still a law no matter what party controls congress.
The California Association of Realtors reports that with an affordability index of 27% in Q4 2020, the median income needed to afford the median priced home is $128,800. You know what the actual median income for California is? Around $80,000. At least we are not Mono County where only 11% of people can afford a median priced home. Home prices are high because of you and me, but at least Sacramento Counties affordability was at 43% in Q4 2020. Even with our soaring home prices, wages seem to be doing better than many other places.
If you made it this far, we might be able to be friends. If we might be able to be friends, then we can talk about selling your home.
Give me a call so we can talk about it. The market is INSANE right now. When will that ever happen again in your favor? YOLO!
