California….Greatest Place or Help Me Escape!
The most common issue I hear from home buyers is the cost of buying a home in California. I hear it at the salon, in the grocery store and standing around at my kid’s sports practices. Everyone is up in arms about the cost of homes, and I don’t blame them! Let’s break down what’s happening in The Golden State.
The Ole Supply and Demand Game
Didn’t it feel like people were fleeing California to Texas, Idaho and Arizona in the tens of thousands once Covid-19 hit? I may have helped a few relocate and let me tell you they couldn’t leave fast enough! Although people sold and cashed in on the high sale prices there are still more people looking for homes in California than there are houses to move into. Supply and demand is the name of the game in The Golden State, and the bottom line is there isn’t enough supply. Not enough supply combined with major demand means housing prices stay higher than most people would like. Unless of course you’re a seller.
Just Build More Homes!
Easier said than done my friend. The developers that are building in California are doing it as quickly as they can, but they face many obstacles while doing so. California has a plethora of building regulations and environmental codes that builders must comply with. These types of regulations are important but also time consuming. More time, more money. Let’s also not forget the rise in the cost of materials and the cost of labor. Much like everything else building in California is expensive!
Why Do We Live Here Again?
For many of us this is where we grew up. Our families are here, our higher paying jobs are here, and we love the fact that we can go to the ocean and the mountains in one day if we choose to. The temperature is typically mild, and the sun loves to shine. Southern California is home to so many major attractions that people from around the world plan their once-a-year vacation right here in our backyards. Ever hear of the Law of Familiarity? In a nutshell it means when you’re around something enough you become use to it and take it for granted. Sometimes we need a reminder that we live here AND pay for it because it’s one of the most sought-after places to live in the nation. So, the question is, are you staying? If so, then you must get in the housing game as soon as possible. The Golden State is undoubtedly expensive, but when you decide to buy you will be setting you and your family up for a better financial future.