
Ominous Clouds on the Real Estate Horizon?
This blog entry doesn’t have much to do with law and politics in California. But since a good portion of my practice is related to the legal aspects of developing property in California (which has much more to do with politics than you might initially guess — think initiative and referendums that often involve land use decisions, like SOAR in Ventura County), I thought this might be of interest to FlashReport readers.
While the volume ofhome sales have slowed in California (with homes staying on the market longer), the market remains robust with home prices in most areas continuing to increase. This result is somewhat of a dichotomy: The law of supply and demand pushes home prices higher (there are still more people in Californianeeding homes than there are homes available, and the regulatory environment still makes it less than easy to build new homes)whilethe economic realities of higher interest rates (though relatively low in historical terms) act to dampen sales volume. Depending on which real estate professional you talk to, we are in for a soft landing "stabilization" or a roller coaster dive in the coming year.
As a… Read More