California is on fire and continues to be a real estate hot spot. Home prices are soaring, and a limited inventory exacerbates the skyrocketing prices of homes in desirable locations. It is now 2021 and the pandemic squeezed most folks dry of any little savings they had. Many of these people have now left the state of California for more affordable living in other states and the hope of escaping wildfire danger.
California is no doubt entitled to its prestigious status of leisure, comfort, and beauty further used to justify its constantly appreciating cost of living. What then happens when the California air is always smokey from ongoing wildfires, the rivers dry out due to drought, and homelessness continues to be an unresolved issue? The short answer is that people who can afford to leave the state will. This puts many homes on the market and indicates a decline in demand for overpriced California properties.
One of two things can currently happen in the state of California, one; private firms will buy up these properties for prices that are significantly over the asking price and add them to their lists of liquid assets, two; these properties are seen as risk investments in state that has no water, is always on fire, and suffers from chronic homelessness.