According to Cal Matters, California’s housing market is stuck in a rut.
In California, we are experiencing high interest rates, unpredictable tariffs, a shortage of homes, and a 50-year-old property tax law. Mixed together, according to Cal Matters (a non-profit designed to educate how the state is setting priorities and spending public money), we have a housing market stuck in molasses.
According to Daryl Fairweather, Redfin’s chief economist, “Part of the market slowdown can be blamed on a nationwide financial pathology that dates back half a decade.”
She continues,” As mortgage borrowing costs have whipsawed from ultra-low to harrowing high over the last five years, the gap between what most current homeowners pay for their mortgage and what they would pay if they were to borrow and buy again is historically wide.”
Moreover, Oscar Wei, economist with the California Association of REALTORS®, states, “I thought by now we would see sales coming back up a little bit more.”
“Unanswered questions about the future of the economy, according to Wei, tariffs and what they might mean for inflation, the stock market, and how all of the above will influence interest rates are likely holding both buyers and sellers back.”
I believe the Fed will lower rates in their mid-September meeting.
Lowering rates will give needed relief to buyers who are looking to purchase a home.
