A mortgage lender in Santa Clarita is talking about what the housing market currently looks like while the coronavirus pandemic’s economic impacts continue.
As opposed to the negative effects seen elsewhere in the economy, the housing market is instead showing low interest rates, increased sale prices and a shortage of homes for sale, according to Dave Cantrell of American Family Funding.
“You hear about all this somewhat negative news, about unemployment or where the economy is going,” Cantrell said. “But housing — boy, it sure is not having any problems at all.”
A couple of reasons for this are related to supply and demand, and a recent rise in household formations by young people, noted Fred Arnold, also of American Family Funding.
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Additionally, there is a short supply of new land in Southern California, particularly in Los Angeles County, according to Arnold.
“They don’t have a whole lot of land there between the ocean and the mountains,” he said. “In order for them to make new land, they’ve got to knock down three homes to build eight apartment units or 10 condo units, so land is a shortage.”
Other reasons include continuous delays of housing projects as a result of environmental lawsuits, and a limited supply of costly labor.
“(Labor) is very expensive,” Arnold said. “Bottom line is, there’s not a whole lot of people that want to do that trade, and so we have a shortage of labor.”
For more on the current state of the housing market, tune into the full “Financial Hour” on KHTS Radio by clicking here
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