California Eviction Moratorium Ends, How Will The Real Estate Market React?

In case you haven’t heard, California’s COVID-19 Eviction Moratorium officially expired on Thursday, September 30th. What does this mean? It means that potentially a wave of renters in California could be forced out of their homes. The Eviction Moratorium was put in place to ban landlords from evicting people for unpaid rent. Starting Friday, October 1st, tenants are now only protected from eviction if they have applied for assistance. These upcoming months should be interesting considering how the absence of this law may affect California’s real estate market.
It’s no secret that the pandemic caused the California real estate market to soar to new heights, allowing buyers to take advantage of all-time low interest rates, and sellers to make top dollar for their property. However, there was a demographic of homeowners, property owners, etc. who were unable to take advantage of this market due to the state law. Yes, I am talking about those whose properties were vacated with tenants. With so many out of work because of COVID-19, there were plenty of property owners whose renters couldn’t pay rent. And with the Eviction Moratorium implemented, many were forced to wait it out, ultimately missing out on this hot market.
After a year and a half, there’s a new group of property owners who can now enter the market. We potentially may see many new listings since people, simply put, want out. The pandemic has put a strain on everyone, and these landlords might just want to take their profits and get rid of the stress of property management. If you're thinking the market is slowing down, I would strongly reconsider that thought.
With the California COVID-19 Eviction Moratorium expired, how do you expect the market to react? Will we see a wave of new listings? If you’re looking to buy or sell a home, feel free to contact our agents here.

Tags: News, Real Estate, Sellers, Buyers