California has long been known for its thriving real estate market, with high property values and steep competition for homes. However, recent events such as the COVID-19 pandemic and natural disasters have left many wondering if this trend is coming to a close. Are property values going down in California? We turned to experts in the field to find out.
California’s Property Values: A Downward Trend?
Despite its reputation as a hotbed for real estate activity, California has seen a decrease in home sales and an increase in inventory in recent months. According to a report from the California Association of Realtors, home sales in the state dropped by 5.6% in September 2021, compared to the same month in the previous year. Additionally, the report found that the state had a 2.7-month supply of homes for sale, up from a 2.3-month supply the previous year.
This increase in inventory has led to a buyer’s market, where homes are staying on the market for longer and sellers are having to adjust their prices to attract potential buyers. While this may not necessarily mean a massive drop in property values, it does indicate a shift in the market.
Finding the Answers: Experts Weigh In on Property Values in California
To get a better understanding of the current state of California’s real estate market, we spoke to experts in the industry. Mary Lee Blaylock, CEO of Berkshire Hathaway HomeServices California Properties, notes that while there may be a slight decline in property values in certain areas, "overall, we are not seeing a drastic reduction in value." Blaylock notes that the market is still very much driven by supply and demand, and areas with high demand will likely see property values remain steady.
Similarly, John Graff, Chief Economist at the California Association of Realtors, notes that while there may be a slowdown in the market, it’s not necessarily a cause for alarm. "We’re seeing the market return to a more normal state," he says. "We’re not seeing a market collapse or bubble bursting."
While the real estate market in California may be experiencing a shift, it’s clear that property values are not in freefall. Experts note that the market is simply returning to a more balanced state, with a greater supply of homes and less competition for buyers. As always, the real estate market is subject to change, but for now, homeowners in California can rest assured that their property values are still holding strong.