The Market Is A Little Crazy
Tight Inventory, ever rising rents, killer interest rates, the market is really a little crzy! Tenants are struggling with 9 straight years of rent hikes, as we continue to have a housing crisis of epic proportions. That may sound dramatic, but we need housing, and more rental and cross economic levels of housing. We need it all; apartments, condos, affordable housing, single level, high rise density housing. But from where shall it come? Cities are at odds over development and density, price points remain an issue as the median housing price climbs again for unprecedented months continuously. Driven by equally historic low inventory across all of Southern California, and equally historically low interest rates, early February is seeing the lowest bond rates in 20 years, which if you’ve been following the market, is truly saying something, housing is hot. According to the Harvard Center report, the middle income renter, is struggling. (Exact numbers are in the next story). One lender, who is a monthly columnist for the Orange County Register, predicts a 25% minimum price adjustment, DOWNWARD, in the next decade. No one sees it now, but there may be a smidgen of truth or at least reality, in this prediction. Our affordability index is too high, for our median income ratios. Simply put, the general population will not be able to sustain or afford these high prices after the top tier quits buying. People still will need to sell, so logic says, prices will come down at some point as demand wanes and inventory increases. We’ll see.