The housing market in California has gone through a period of substantial housing shortage. While spring is traditionally the time of year when the real estate scene is the most active, there is still a low number of homes for sale on offer. We will be looking at the Inland Empire home inventory shortage and what you can do as a buyer to find a home that's right for you.
How the pandemic influenced the housing market
When the corona pandemic initially started, the real estate market froze up. Honestly, no one expected the lockdown measures to last that long, and not many were prepared to face what was coming. We saw a global recession, yet the housing market was very resilient. Home prices were rising, and people were looking to real estate as a form of a safe investment. This led to a housing shortage that persisted for a record amount of time. Due to the low number of homes on the market, buyers were forced to raise their bids, leading to further price increases. There were unexpected supply chain disruptions during the pandemic, which caused new housing projects to become endlessly delayed. Real estate developers also had to pause their projects due to lockdowns and workers getting ill. New homes couldn’t be completed in time, and there was a serious supply issue that couldn’t meet the growing demand. Unfortunately, raw materials needed for construction are still hard to secure at a reasonable price. Developers are trying to find alternatives in locally sourced sustainable materials, but that is far from easy. These issues persist, which has led to the Inland Empire home inventory shortage we are currently experiencing.
The current state of California’s home inventory
To say that Southern California is facing a housing shortage would be an understatement. However, it isn’t all doom and gloom, and there are still numerous listings on the market. Sadly, the real estate problems which started with the pandemic are ongoing, and other issues will prolong the home inventory shortage.
First of all, we can expect a wave of global inflation to hit due to the conflict in Ukraine. This could cause real estate prices to soar, while construction materials for new housing projects would still be hard to come by. Additionally, there have been recent changes to Fannie May rules meant to help renters become homeowners. You might wonder how this new rule could be bad for you if it’s meant to benefit anyone looking to purchase a home. It also means that you will be competing with more buyers for the same number of properties. This type of situation in the real estate scene is commonly referred to as a seller’s market. Those trying to get rid of their property will have no problems finding interested buyers. However, this doesn't necessarily mean that you should immediately sell your investment property. We can expect prices to keep rising, and it might be a good idea to consult professionals for a home evaluation before making any decisions.
What can you do regarding the Inland Empire home inventory shortage as a buyer?
If you are currently on the market as a seller, the current situation might not look too favorable. However, we don’t recommend putting off searching for a home for too long. California real estate experts agree that prices will maintain their historic high for the foreseeable future. Fortunately, there are a few steps you can take to find the home of your dreams.
1. Get pre-approved for a mortgage
Sellers are generally interested in buyers who have been pre-approved for their mortgage. They will see you as a serious buyer, and the negotiations will go faster. Consult with a lender to start your pre-approval process before looking at available homes.
Lender explaining mortgage to California home buyers.
2. Research the local market
When there is a home inventory shortage, the available properties tend to move quickly, and popular listings in the Inland Empire get snatched up before you know it. This can discourage buyers from looking at listings before they are ready to buy. However, that would be a mistake. You should get to know how properties are valued - research which features are common for homes in your area and how they impact the value of the property. This will likely take a lot of time, but if you research before you are ready to purchase a home, you will be able to know which properties to focus on when you get all of your paperwork in order.
Get ready to negotiate and compromise
Negotiation is always a back and forth process where both sides need to compromise to reach an agreement. When making an offer for a property, you should try to be realistic and understand that the other party may also have some requirements. Know your priorities, but be willing to make a few exceptions.
Offer above the asking price
You probably won’t be the only person bidding on the property you had in mind. If you want to draw the seller's attention, you might want to consider going above their asking price. After all, the Inland Empire home inventory shortage has made it a seller’s market.
Prepare everything in advance
Even when both you and the seller see eye to eye, there will still be additional preparations you need to go through before you can move into your new home. You should organize a home inspection before you close the deal. You might also want to reach out to a California moving company and hire all the services you will need. If you want to move in quickly, you should use everything at your disposal. Professional movers can usually offer additional services such as furniture packing or moving supplies.
In conclusion
Southern California home prices are rising, which is to be expected due to the Inland Empire home inventory shortage. However, if you do your homework and are ready to move when you see a property you like - you should have no problems finding a home suited to your needs. Meta description: Real estate buyers are having difficulty finding affordable properties for sale amid the Inland Empire home inventory shortage.
Images used:
https://www.pexels.com/photo/person-giving-keys-from-new-home-to-family-7489107/
https://www.pexels.com/photo/real-estate-agent-handing-the-key-to-her-client-8293693/
https://www.pexels.com/photo/real-estate-agent-discussing-in-front-of-his-client-8293744/
https://pixabay.com/photos/victorian-style-redlands-historic-1647594/
