Are you contemplating why Homeowners Struggle To Purchase Homes in 2022? The high real estate demand and rising house prices for rentals fuel the real estate companies’ cut-throat acquisition strategy. This investment growth in California has left the Homeowners Struggle To Purchase Homes. According to a Bloomberg report, the cut-throat real estate market in the
Are you contemplating why Homeowners Struggle To Purchase Homes in 2022? The high real estate demand and rising house prices for rentals fuel the real estate companies’ cut-throat acquisition strategy. This investment growth in California has left the Homeowners Struggle To Purchase Homes. According to a Bloomberg report, the cut-throat real estate market in the U.S is crushing the first-time homebuyer’s dreams.
Current Situation of Real Estate Investment Growth in California
In September 2020, the median house price in California reached an all-time high of $712,430. A survey report by the Public Policy Institute of California (PPIC) suggests that 9 out of 10 Californians struggle to afford a house. On the other hand 1 in 3 Californians is considering moving to a different state.
3 The Challenge of Rising House Prices
Here are the 3 main challenges faced by homeowners in California.
1. A gap in Supply and Demand due to investment growth in California
One of the biggest challenges that the rising house prices present is the difficulty for first-time homebuyers to get on the ladder. The stiff competition has made affordable housing an unachievable dream for many Californians.
The supply and demand have a huge gap with fewer properties while the prices continue to surge. According to S&P CoreLogic Case-Shiller, the 20-city home pricing index reached a record 19.7% in June 2021 than 2020. Why? Because fewer homes are available to buy. Furthremore, the all-time low-interest rates have enabled real estate investors to pay more than an average homebuyer.
2. Instant Cash by Real Estate Companies
Single-family properties home have felt the impact of investment growth in California the most as the homes tend to sell in days. Investors have instant cash to buy a home at higher prices while homebuyers try to secure a mortgage.
This is really frustrating for the home buyers. They are losing decent homes to fueling real estate companies with bigger pockets to flush instant cash.
3. Investment Fund Entities
Investment funding entities such as Blackstone Group have bought thousands of distressed and foreclosed properties. Blackstone group converted the bought properties into rentals. This has been a death of home sales and the rise of rental housing. The trend has even motivated Wall Street to back up the renting single-family home trend than selling them on the market.
Therefore, many would-be homeowners have no option but to rent. The problem of homebuyers facing competition from big real estate investment companies is out of hand. Therefore, the Biden administration is hoping to control the snowball effect and address the supply shortage for homebuyers in California.
Bottom Line: Homeowners Struggle To Purchase Homes
If you are a potential homebuyer searching for information about real estate, questions, and tips on buying a home or saving money on a mortgage, we at I Need House Info can help. Visit our website to stay updated on the latest developments. Contact our team to get insight into your concerns and questions about the rising house prices due to real estate investment growth in California.
Suppose you plan on relocating or selling your property in the Inland Empire region of California. In that case, Inhouse Offer Is a reliable cash investor who can save you the hassle of selling your property by saving you on closing cost, commissions cost, and service fees! Inhouse Offer Grants one FREE property quote and provides a cash offer for your property within 48 hours! Click on the Inhouse Offer link to get in contact; we can reach out to you; just fill out the easy form with a phone number and name!