The past six weeks have been chaotic to say the very least. The coronavirus has disrupted our lives in so many ways, and we are learning to adjust, but it can be scary. A recent common topic of conversation between myself and clients, the public, and other Realtors® has been: “What do you think will happen to the real estate market after all of this? Where are we headed?” I thought it might be nice to jot down some of my personal thoughts and beliefs on the topic!
Here in Humboldt County, we face the issue of a fairly consistent housing shortage. What this means is that there are fewer homes available than there are people needing housing. This goes for renting and homeownership alike. Why? Because we have limited space available to develop further. There are some areas like McKinleyville and Fortuna that have been infilling, which is great. In Eureka and Arcata, however, we are faced with development difficulties such as greenbelts and marshland that prohibits more housing from being built. What this does for our housing market is stabilize the prices. We have seen a steady incline in the past several years (the 2008-2009 recession caused a hit, just as it did everywhere else).
If we take a step back and just look at basic principles of economics, low supply and high demand will always cause prices to increase or at least hold steady. I feel that, even in the midst of another nation-wide recession, Humboldt County will be less affected in our housing market than other metropolitan areas simply because we have such limited supply of housing.
Another factor that is somewhat new, is that people are realizing through this pandemic and Stay at Home order that they can work remotely! They may not need to live in metropolitan areas to work corporate jobs that are based there. In fact, some companies have decided to continue working entirely remotely into the future! I have already heard of several people who have decided to relocate to more rural areas (such as Humboldt County) and continue to work for their corporation of choice! We have so many awesome qualities that would draw folks from the cities, some of which are: clean air, no traffic, countless outdoor activities to enjoy, and relatively cheaper housing and standard of living.
Bottom line is, there are a lot of reasons that support the continued health of our housing market in Humboldt County. I feel truly lucky to live in such a beautiful area that allows us the opportunity to enjoy the outdoors and other positive aspects of living “rurally.” I understand that this season we are currently in is scary, and nothing about the future is promised. I also see this as a chance to appreciate where we live. I would rather be self-quarantined here than pretty much anywhere else! Stay safe and sane Humboldt, we will get through this together.
Mallory and Charlie
*Photos courtesy of CKC Image