Real Estate inventory is piling up: Housing market unaffordable to most Californians so what happens next??
ByPrice cuts. Cookies at open houses. Listings lasting longer than a few weeks on the MLS. The housing slow down is now officially here. Delusions usually end up on a direct path with reality. Housing is always a lagging indicator of underlying economic activity. People will fight to the bitter end to save their homes. Unlike the stock market, prices do not adjust overnight. However, in places like California the weak performance in the stock market last year is going to hit the bottom line for state tax revenues. It is also giving pause to VC money that was chasing absurd companies with nonsensical P/E ratios in search for the next billion-dollar unicorn. But little by little inventory is starting to pile up. People are opting to rent versus buy or in California, or as over 2 million adult “children” have opted to do, move in with their baby boomer parents. So what does the rise in inventory signal for 2019?…
