There has been a lot of talk about the California housing market crashing in the next few years. While it’s true that the market has been cooling off, there are still a number of reasons to believe that the California housing market will remain strong in 2023. As an Oceanside realtor, understanding the market is vital and one of the foundations to succeed in the real estate business. I will share in this blog why the housing market will remain strong in 2023.
Over the years, the California housing market has had plenty of periods of volatility but, long term, it always bounces back stronger than ever before. There are a number of factors that have kept the market strong in the past, and there’s no reason to believe that these factors won’t continue to have an impact in the future.
In this article, we’ll take a look at 5 reasons why the California housing market will remain strong in 2023.
The state’s economy is strong
One of the main reasons why the California housing market will remain strong in 2023 is because the state’s economy is strong and growing. California has been the 5th largest economy in the world for a number of years and the largest in the US. It’s a leader in technology and innovation, and has a booming tourism industry.
These are all factors that contribute to a thriving housing market. As long as the economy is growing and new jobs are being created, the housing market will remain strong. Plus, with the stock market at an all-time high, it’s likely that housing prices will continue to rise.
Employment is high
Another major factor is that the employment rate in California is still quite high. The state has a 4.1 percent unemployment rate, which is slightly higher than the national average but still very strong. With more people in employment, more people are likely to be looking to buy a home.
This is great news for people looking to buy in the near future, but it also means that those who already own property can expect an increase in their home’s value in the future. The current employment rate in the state is only expected to shrink as industries like technology, entertainment, and tourism continue to expand.
This is great news for those looking to invest in the California real estate market in the near future. With more people in higher-paying jobs, the demand for homes will only go up, which will help to keep the market strong. Additionally, those looking to invest in property can rest assured that the value of their investments will remain strong for years to come.
The current housing shortage is expected to ease
The current shortage of housing in California has been a major factor in driving up prices. While we still currently have very low inventory, it’s come up significantly since the buyer frenzy caused by historically low mortgage rates in the past several years. Prices have already begun to soften as the combination of more supply and fewer qualified buyers has had an impact.
This is good news for potential buyers, as it means more affordable housing options. It could also be good news for investors, as it could lead to increased demand for rental properties, which could lead to higher returns on investments.
California is a desirable place to live
Another reason why the California housing market will remain strong in 2023 is because California is a desirable place to live. With its beautiful weather, world-class restaurants, and amazing beach towns, it’s easy to see why California is such an attractive destination. From Silicon Valley to Hollywood to San Diego, there’s something special about living in California. This popularity has helped to keep the market strong in the past, and there’s no reason to believe it won’t continue to do so in the future.
Conclusion:
Although the California housing market has been cooling off over the past year, there are still a number of reasons to believe that the market will remain strong in 2023. The state’s economy is strong, employment is high, in-migration is positive, and the current housing shortage is expected to ease.
Additionally, California is a desirable place to live, which helps to attract more buyers and investors. With all of these factors in play, there’s no reason to believe that the California housing market won’t remain strong in 2023.