On this episode of WTF California, real estate professional Rick Fuller joins us to talk about what is going on with California Real Estate and how 1 in 3 people selling their homes are moving out of the state. We talk a variety of issues including the impacts of lawmakers.
Fuller is a real estate broker with officers in the San Francisco Bay Area and Sacramento Area.
Contact Rick Fuller:
02:43 – how is the media screwing up the message when it comes to real estate?
Fuller highlights real estate is still a great purchase.
04:10 – Is migration really happening from large cities to East Bay or further out?
Fuller explains people are migrating of people moving out of San Francisco and Los Angeles from urban to suburban which is pushing others to rural areas to even other states.
06:20 – We talk about if Idaho still has value?
Fuller explains when people leave California, its always been for value. Now “value” is no longer the number one reason, people desire to leave meaning they are not happy with California, not leaving for value.
08:00 – If so many people are leaving, how is there still a housing crisis?
Fuller highlights how the forecast was off by 6% in home value appreciation and there is still more people moving into California than out. It’s a problem with the supply chain with not enough homes available to purchase. 50% less homes are available on the market today than last year.
12:55 – At what point, with new legislation, do they overbuild? We also get into the Bay Area Rapid Transit bill for affordable housing 1-mile around BART Stations aimed at creating affordable housing.
Fuller highlights what legislators have done to real estate is simply not working because when they pull one lever, it pulls another. He highlights how those with heaviest laws have become least affordable to live and not creating affordable housing.
15:30 – We touch on the impact of Accessory Dwelling Units (ADU’s) on property values along with home offices.
Fuller highlights the trends and what is occurring and what builders are now doing and what COVID-19 has done to the trend of tiny homes.
26:50 – What scares realtors within the industry?
Fuller highlights a couple of things.
30:56 – We jump into Prop 19 which passed in November
This goes into effect in April 2021… allows you to sell the home and take the tax base to a new home. This applies for 55 & older, disabled, wildfire victims. Under Prop 19, people can use it 3x.
37:15 – What happens to real estate values in a city when the voting majority council wants to de-fund the police and create a negative narrative at any means?
Fuller says people want to feel “safe” which is a real estate fundamental.
39:30 – What is the biggest concern for someone selling their home?
Fuller says right now, its easy to sell. But real estate has had to move to technology such as drones and aerial photographs.
40:50 – What happens when all these laws/requirements come into play at the same time. Could a bad crash happen like in the past due to inflated prices?
Fuller says average home is more than $700k and he has never seen prices this high, but there are many fundamental differences from back in 2005. He goes into depth on why its different now.
44:50 – How do first time homebuyers get into homes with $700k average price?
Rick offers advice to first time homebuyers. He also gets into 30-year vs. 15-year fixed and the types of down payment options. He also gets into growing wealth and how to manage money and to build wealth.
56:17 – Rick Fuller highlights his book “California Great Migration”
This is free and a digital download.
59:45 – Fuller forecasts his “crystal ball” over the next few years.
Fuller provides his opinion.
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