Real estate is depreciating significantly. There is no easier manner in which to say so. Some predict that this will be the most significant adjustment of the real estate market in modern American history. This adjustment is expected to be most severe within the first year, and then to continue for a few years. The more overpriced markets and overpriced properties will likely be affected most.
Recession, inflation, interest rates and the many economic variables that affect the real estate market are all so confusing. Their influences are undeniable though. Real estate investments are losing value. Rental properties will likely be generating less revenue soon. It all seems to be so unpleasant.
However, depreciation of real estate may improve the potential for some who would like to purchase a home to do so. Also, declining rental rates may facilitate procurement of rented domestic situations by some who would benefit from them.
The local real estate market has been unreal for quite a while. Average and better than average incomes have been insufficient to sustain mortgages or rents. Although declines of real estate markets are considered to be detrimental to the economies of their respective societies, they make real estate more realistic.
It will be interesting to observe the results of the declining real estate market, particularly in conjunction with what already seems to be a declining rate of houselessness. Any benefits from such loss would be gratifying.
Meanwhile, although many homes were damaged by severe weather since the end of December, only about eight were destroyed within all of Santa Cruz County. Those that were damaged should be repairable, so those who inhabit them should not lack them for too long.
The innate risks associated with real estate here do not deter many of us from continuing to live here.