Part 11/12:
However, a sudden drop in prices appears unlikely unless external shocks occur — like significant economic downturns or a swift reduction in interest rates. Many homeowners with sub-3% mortgages are disinclined to sell and move, further impeding rapid adjustments.
Final Thoughts: Affordability and Market Recovery
In conclusion, California and similar markets are facing a real estate crisis of affordability. The combination of high prices, high mortgage rates, and negative migration has created a buyer drought and a mountain of unsold homes. While prices are expected to slow in appreciation, a large-scale correction is not imminent without a fundamental shift in interest rates or economic conditions.