The Great Reset: Declining inventory – California is the canary in the coal mine?

"California's housing market crash just got even worse for homebuyers in 2023, with inventory on the market plunging by -23% over the last year. And up to 50% in certain metros.

"This plunge in homes for sale is now causing home prices to stabilize, with data from Zillow showing that values are down -4.4% YoY across the state. And up to -10% in San Francisco. These prices actually went up this spring and early summer due to a lack of inventory on the market.

"In some areas in San Francisco prices are down as much as 20% over the last year and values are back down to their levels five years ago. However, in real estate markets such as San Diego and Los Angeles the price declines aren't as bad.

"The big issue in California's Housing Market is that home prices are way too high, which combined with 7% mortgage rates, means locals can't afford homes. This lack of affordability has caused home sales to collapse according to data from the California Association of Realtors.

"However, the collapse in sales is not leading to an increase in inventory and homes for sale. That's because sellers across California are remaining stubborn, with new listings down 30% YoY according to Realtor.com.

"Ultimately more listings will need to hit the market before we see prices drop further, which will likely require an increase in the unemployment rate and more mortgage defaults."

So how long can the prices stay up? What will it take for it to collapse… completely? Will all these be timed for an astronomical event happening in perhaps within 15 months or 30 months?

More in the Reventure Consulting video.