Scream! That was the sound many thought they would hear from the real estate market in June, when the Fed raised interest rates by 0.75%, and then again in July, when rates were raised by 0.75%.
But here in Humboldt County, the actual outcome appears to be much more subdued. While July’s inventory was nearly double what it was a year ago, it’s still a fraction of pre-pandemic inventory. And while the number of homes sold year-to-date is down 13.6% from last year, 2021 was a record year for properties sold in Humboldt County, and the previous record was set in 2020.
Many in the industry have long suspected that the pace of the real estate market in the past two years was unsustainable. The rise in interest rates was designed, apparently effectively, to slow the market, curb demand and, hopefully, inflation. Humboldt County, however, remains attractive to homebuyers, locally and across the country, which has so far maintained a moderate adjustment in our inventory index. While undeniably trending – Humboldt County had 3.5 months of inventory on hand in July, in March we had less than 2 – compared to July 2019 (4.9 months) and 2018 (5.3 months), it can be assumed that we are headed for a more stable market. balanced, traditionally defined by 5-6 months. Away from the roar stopped some forces for him.
When you factor in the influx of students, faculty and staff at Cal Poly, the planning commission’s approval of Aquafarms Nordic earlier this month, and the increasing severity of inland fires; coupled with the prohibitive costs of new housing developments, our local real estate market is unlikely to stop anytime soon.
Real estate is extremely localized, so while national headlines convey averages and generalizations, if you really want to know what’s going on in the Humboldt County real estate market, talk to a local real estate expert.
Annalize von Borstel, Associate Broker at Better Homes & Gardens Ming Tree, is a local real estate expert. She is also president of Business Networking International/Northcoast Networkers, president-elect of the Rotary Club of Eureka 1923, and secretary of the Compass Community Credit Union Board of Directors. You can reach him at email@example.com, 707-616-2548 or www.agentannalise.com.