Scream! That was the sound many expected to hear from the real estate market when the Fed raised interest rates 0.75% in June and another 0.75% in July.
But here in Humboldt County, the real outcome seems to be an upset. While the July count is nearly double from a year ago, it’s still a fraction of the pre-pandemic tally. And the year-over-year number of homes sold was 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 were skeptical that the real estate market’s momentum over the past two years was unsustainable. Increasing interest rates, seemingly effectively, is designed to slow down the market, curb demand and, hopefully, create inflation. Humboldt County, however, remains attractive to homebuyers, both locally and across the country, with a slight correction in our inventory index so far. While it’s clearly showing — Humboldt County had 3.5 months worth of inventory on hand in July, we had less than 2 in March — compared to July 2019 (4.9 months) and 2018 (5.3 months), one might assume we’re. Moving to a balanced market, traditionally defined as between 5-6 months. Some backed away from the noise stop.
With the influx of students, faculty and staff at Cal Poly, the approval of Nordic Aquafarms by the Planning Commission earlier this month, and the increasing number of wildfires in the ground, combined with the prohibitive cost of new home construction, our local real estate market is unlikely to stop anytime soon.
Real estate is highly localized, so while national headlines convey averages and generalizations, if you want to know exactly what’s happening in the Humboldt County real estate market, talk to a local real estate professional.
Annalize von Borstel, associate broker at Better Homes & Gardens Ming Tree, is a local real estate professional. She is also a member of Business Networking International/North Coast Networkers, President-Elect of the Rotary Club of Ereka 1923, and Secretary of the Board of Directors of Compass Community Credit Union. You can reach her at email@example.com, 707-616-2548 or www.agentannalise.com.