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I think the main reason is many folks have jobs and continually good annual wage rise. Wage inflation, both nominal and real, is expected to last a few years. That is, owners have holding power and renters can withstand higher rents. Ignore ranting and whining.
The value of your home only matters we you sell. My 2007 purchase house in the example dropped 50% in valueā¦ but so did my property taxes. Meanwhile rents kept going up. Then it recovered to the original purchase price. Granted timing is important. There will be buying opportunities. The perception of lots of people leaving will change. I wonder how many Californians regretted leaving for Florida. The 2001 escapists all returned within 5 years.
As far as housing shortagesā¦ we have an extreme shortage in South Lake Tahoe. People sharing bedrooms and sleeping in living rooms. 10 people sharing 3bedroom houses. Homeless everywhere. Plenty in the BA too. There may be a lot of empty homes. But that is caused by tenants rights groups scaring the hell out of potential landlords. The State is determined to reduce available affordable housing by terrorizing the only people that can supply itā¦ bullish for RE prices long term.
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Shortages or rents too high? House prices have 
too suddenly, forcing many to rent/ continue to rent which lead to rising rent. Take time for things to settle.
The real problem is we canāt build new affordable. I have been on this forum for 13 years sending out the alarm about cost of construction and development. Meanwhile costs have tripled and there are still trolls saying we donāt have a housing shortageā¦ even students at UC Santa Cruz are living in cars. The progressive looney left caused the housing shortage. Only good old Yankee ingenuity will solve this ā¦.Build baby build
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Caused by too rapid expansion of intakeā¦ under political pressure.
Price is always unaffordable to some.
Builders will always max their profit.
More supply leads to more people stay or even come here which lead to price pressure again.
Housing requires frequent policy adaptation.
Housing is built by builders, not housing policy. Builders should be able to build whatever the market demands and not be restricted politics and bureaucrats. Capitalism is the solution. Communists and progressives are the problem. The left just wants to pander and maximize their baseā¦ renters with no hope of owning a home thanks to these politicians.ever
Policy influences buildersā decision.
Thatās why we need to get rid of the policy policeā¦ not the builders like me that got feed up burned out an left. The retired builders have to get into politics to beat these commies. I am trying to effect pro building programs in Tahoeā¦ lost cause. Thatās why I continue to buy property that is way below replacement costā¦ even pricing land at zero.
Even in Florida prices are holding. Vultures are already shopping
Good deals to be had?. I doubt it.
āDespite the slowdown in sales, inventory continues to drop. There were 1.25 million homes for sales at the end of September, down 0.8% compared with September 2021. At the current sales pace, that represents a 3.2-month supply. Six months is considered a balanced supply.ā
āTight supply continues to put pressure on home prices. The median price of an existing home sold in September was $384,800, an increase of 8.4% from September 2021. Prices climbed at all price points. This makes 127 consecutive months of annual increases.ā
Experienced investors have been expecting inventory (number of units, not months of supply) to decline.
Inventory (in number of units) = new construction + existing homes
New construction. Builders have stopped construction of homes that havenāt been sold. So as new construction are sold, the number of new construction available would decline.
Existing homes. We know it will be declining because move-up has practically stopped.
ā Fortunately, mortgage forbearance programs allowed struggling borrowers to pause their payments until they could get back on their feet. And it worked: by the end of June, the share of mortgage balances 90-plus days past due remained at 0.5% ā a historic low.
And compared to 2010, when delinquencies on single-family homes hit a 30-year high of 11.36%, the rate was just 2.13% in the first quarter of 2022.ā
https://www.zillow.com/homedetails/850-Mirror-Ct-Tracy-CA-95304/119403661_zpid/
Tracy prices back to pre pandemic level. This owner started listing at 950 and ended up selling at 690 after numerous price reductions. Good that he finally got back common sense and got rid of it, its headed to under 500 within 6 months (thatās almost 50% drop).
| 10/21/2022 | Sold | $690,000 (-1.4%)$299/sqft |
|---|---|---|
| 10/3/2022 | Pending sale | $700,000$304/sqft |
| 9/20/2022 | Price change | $700,000 (-6.5%)$304/sqft |
| 8/18/2022 | Price change | $749,000 (-6.3%)$325/sqft |
| 8/2/2022 | Price change | $799,000 (-2.4%)$347/sqft |
| 7/9/2022 | Price change | $819,000 (-8.9%)$355/sqft |
| 7/5/2022 | Price change | $899,000 (-4.9%)$390/sqft |
| 7/1/2022 | Listed for sale | $945,000 (+52.4%)$410/sqft |
For 700k, Iāll stay in San Leandro and live in a smaller house.
Schools are not even good. 
how did you arrive at this conclusion with just one home. Shouldnāt we wait before concluding? every other home in tracy has made profit for the owner. This person made 50% profit selling 1 week before your listing and bought at feb 2020.
https://www.zillow.com/homedetails/6456-Dan-Havicus-Dr-Tracy-CA-95377/300275773_zpid/
Reinv is a troll. The seller bought in 2020 for $620k and sold for $690k
Made 10%ā¦ not a 50% loss. Obviously the realtor was desperate and let the seller price it way too high. Plenty of bargain hunters like Reinv looking for steals that will keep prices from collapse. Watch Altos Research weekly videos. Inventory nationwide is still 40% of normal. Prices flat or down 5%. Fed will blinkā¦ interest rates will fall. Meanwhile cash buyers will be able to take advantage of some weak sellers.
