THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
California Housing Market Predictions
This week’s episode of THE FINANCIAL COMMUTE features a special session recorded live from Morton Wealth’s 2024 Investor Symposium. Host Chris Galeski welcomes Mortgage Advisor Brian Farwell and Thousand Oaks City Council Member Mikey Taylor to discuss the California housing market.
Here are some key takeaways from their conversation:
• Brian highlights that while low-interest rates previously boosted affordability, recent increases have made it difficult for buyers to afford homes, particularly as property prices have not decreased to offset these rates.
• Mikey explains that the supply shortage in California dates back to the 2008 financial crisis, which drastically reduced new developments. Ventura County alone now faces a 33,000-unit shortage.
• If interest rates decrease, more households would qualify to buy, increasing demand faster than any additional supply from homeowners who might then choose to sell.
• First-time buyers are often relying on co-signers or family gifts, while non-QM (Qualified Mortgage) loans and retirement account withdrawals are used as creative financing methods.
• For individual buyers, both Brian and Mikey suggest that purchasing a home now may make sense for long-term plans. For investors, they are buying multifamily properties despite challenges, leveraging current market conditions and California’s slow-building process to secure profitable assets over the long term.
Looking to watch more of the live sessions from our 2024 Investor Symposium? Stay tuned as we release more episodes like these in the coming weeks such as Replacing Income in Retirement, Liquidity: Blessing or Curse?, and New Trends in Investing.