Most analysts predicted rate increases would kill California housing demand. Wrong.
Despite rates rising from 3% to 7%, California buyers keep buying.
Why demand holds up
1. Population influx
California still attracts workers, especially tech relocations from red states.
2. Job growth
Bay Area, LA tech hubs, San Diego biotech creating steady jobs.
3. Limited inventory
Sellers with 2-3% mortgages aren't moving. Creates inventory shortage.
4. Life events
People still get promoted, marry, have kids. Life happens regardless of rates.
5. Investor demand
Institutional investors buying single-family rentals. Creates price floor.
Market implications
Strong demand + limited inventory = sticky prices
Even with 7% rates, California home prices haven't corrected like other states.
Comparison:
- Phoenix: Home prices down 10-15%
- California: Home prices stable, slightly up
Different supply/demand dynamics.
What it means for buyers
No crash coming. Don't wait for 20% price correction. It's not happening in California.
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Make moves now if:
- You need housing
- You have stable income
- Interest rates aren't going lower soon (Fed on hold)
Bottom line
California housing demand remains resilient. Inventory scarcity protects prices even when rates rise.
If you're considering buying, assume current prices and rates are your reality. Plan accordingly.
Ready to buy in today's California market? Get A Quote.
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Bill McCoy | 888-421-1117 | mccoy@betteroffers.com