Throughout economic shifts, The Newport Group’s residential real estate executive search consultants have always remained current with housing market predictions. Our significant insight based on strong relationships and recent conversations with the industry’s top executives and consultants provide The Newport Groups Clients with a strategic advantage and access to talent that other firms just can’t deliver. We are a true real estate executive search firm, and our real estate headhunters are aware of current real estate trends. Here is our take on the CA Homebuilding Market and where we might be headed:
Is the Housing market slowing down?
The beginning of 2022 brought low mortgage rates, and homebuyers in California jumped at the window of opportunity. Sales were strong in the Real Estate Housing market. That demand drove up sales and average home prices across the state and the country, for that matter. But things have changed in the housing market as a result of interest rates jumping and the accompanying affordability issues.
While home prices rose statewide during August, they actually showed a monthly decline across most regions, including the Bay Area, where prices dropped (-3.7%), and Los Angeles (-1.9%). Sales in the SF Bay area rose a substantial 9% during August.
What’s driving the real estate housing market in California is the same as all other states — higher interest rates and insufficient supply. Supply will never suffice in beautiful California, but interest rates are a big question mark in the eyes of some.
Recent rate hikes have slowed down the market. Affordability is a big question, and homebuilders are retooling their strategy on every part of the process, from Land Acquisition to Sales. Everything is getting scrutinized as it should. These are the major real estate trends that The Newport Groups Real Estate Recruiters are seeing.
Build-to-rent communities are here to stay. The affordability gap is fueling this sector’s continued growth, with many “for sale” communities being retrofitted as “build to rent / BTR “ projects. It’s a factor in the real estate housing market, and our Real Estate Development recruiters are aware of this real estate trend.
This is where a knowledgeable and competent Executive Search Firm can be of tremendous benefit. The Newport Group is a true Real Estate Executive Search firm. Human Capital is key, now more than ever!
Let us help you make that great next hire or strategic career move. Let our relentless quest for talent and our quest for real-time intel be a key tool in your toolkit for navigating the rapidly changing conditions in Homebuilding, Build to Rent, Single Family Residential, and Multifamily residential real estate.
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