One week, the Southern California real estate market is up. Next week, it’s down. There are numerous factors currently affecting this roller coaster ride. And with so many unknowns, it is no wonder buyers and sellers alike are debating whether they should stay on or get off.

For some constructive insights and sage advice, we asked five industry professionals with proven track records of navigating the ins and outs of So Cal’s complicated real estate market. Their knowledge and experience are invaluable for anyone looking to wade in.

Myra Nourmand

Principal Agent
Nourmand and Associates
myranourmand@nourmand.com

Joyce Rey

Head of the Coldwell Banker
Global Luxury Division for
Southern California
Coldwell Banker
joyce@joycerey.com

Maura Short

Real Estate Director
Maura Short Real Estate Group
maura@compass.com

Branden & Rayni Williams

Branden, President & Co-Founder
Rayni, CEO & Co-Founder
The Beverly Hills Estates
rayni@thebeverlyhillsestates.com

Q: WHAT’S THE SINGLE BIGGEST FACTOR AFFECTING THE SOUTHERN CALIFORNIA REAL ESTATE MARKET GOING INTO 2023?

SHORT: I think we are looking at a tale of two cities. For entry and mid-level markets, higher mortgage rates have stalled these markets. In more affluent areas, lack of inventory is still the biggest challenge.

NOURMAND: The biggest factor are the interest rates!! Stock markets going down brings about a lot of discussion of an impending recession.

REY: Unfortunately, the interest rates are a reflection of the economic data. The recent Federal Reserve decision to continue raising interest rates has caused a slowdown in sales volume in all price ranges. However, real estate remains the best investment for any portfolio and a great hedge against inflation.

BRANDEN & RAYNI WILLIAMS: The perception that the market is in distress. This market is resetting; real estate is cyclical, and it will always take twists and turns, especially at the 10-year mark, and we have been going strong for almost 13 years. Southern California is the most stable and resilient of all housing markets due to the weather, beautiful landscape, and most of all, it is the epicenter of so many incredible industries.

Q: HOW SHOULD POTENTIAL HOMEBUYERS APPROACH PURCHASING A HOME IN THE REGION’S HOTTEST AND MOST ACTIVE NEIGHBORHOODS?

BRANDEN & RAYNI WILLIAMS: Aggressively. You will always regret not getting the home you wanted but didn’t really go for. If you find something you love, you should go after it. Your home is your sanctuary, and it will make your quality of life that much better by loving the place you call home. There is no substitute for happiness in life and that starts at home.

NOURMAND: Come in strong with your terms! The competition is real. Do your inspections prior to an acceptance if the seller will allow it. Get your finances in place before you write your offer and be ready to pull the trigger in a very short period of time.

SHORT: Buyers need to be prepared to act and act fast. Cash offers with fewer contingencies will take the prize in these neighborhoods. Security of a sale has become exponentially more important.

REY: They first need to have an experienced, professional, and knowledgeable realtor whom they trust representing them every step of the way. Arranging one’s finances in advance is imperative, particularly when there are competitive bids. A careful list of must-haves also helps in the evaluation of each property. Also making yourself available to your real estate agent is important! You’ll need to respond quickly to your real estate agent with well-priced properties.

Q: WILL 2023 BE A GOOD TIME TO LOOK FOR A SECOND HOME, A VACATION HOME OR AN INVESTMENT PROPERTY?

REY: Absolutely! There is never a bad time to shop for real estate. In contrast to the recent past, the shifting market has created many opportunities for buyers. It’s important that they take advantage of this situation.

BRANDEN & RAYNI WILLIAMS: It is always a great time to buy, even at the height of the market if you can afford it. Buy it if you love it. Tangible assets are more valuable than ever. The best real estate is what you bought 10 years ago. Look at the markets 10 years back, you always wish you bought then.

SHORT: Definitely! There are two factors affecting the second/vacation home market. First, many people who fled the cities during the pandemic are now moving back. Second, second-home owners who need to either increase their liquidity or lower their expenses will look to sell. For investment properties, demand and rents are going up.

NOURMAND: Yes, it’s a good time to look and see what’s out there. I would tread slowly because it would be a second home. But if you could find a good property that makes sense as a second home, I would encourage a buyer to write an offer.

Q: IN AN INFLATION-INFLUENCED ECONOMY, MANY HOMEBUYERS ARE LOOKING TO GET THE MOST OUT OF THEIR MONEY – WHAT ARE THE BEST METHODS TO ENSURE MAXIMUM RETURN ON INVESTMENT?

NOURMAND: The best location they can afford and the biggest piece of land. Good architecture, location and land are guaranteed money in the bank!

SHORT: Hard assets are typically a relatively safe investment during inflationary periods. Investment property will be in high demand. Silver and gold are good bets as are inflationadjusted bonds. Lastly, I think large consumer staple companies such as Walmart, Costco, or Home Depot will weather this inflationary period better than other industries.

BRANDEN & RAYNI WILLIAMS: Have a specialist represent you when buying a home. In the right location, good homes always hold their value and go up and that is why a great agent is essential to guide you through the home buying process. Whether a stock portfolio, diversifying your financial portfolio, or a car – always have an expert advising you. Real estate is no different. It’s a major asset and requires guidance from the most knowledgeable agent to capitalize on the investment.

REY: It all comes down to the sale price. An experienced and professional realtor will guide you in the negotiation and advise you of accurate and recent comparables in the area. If you look at luxury residential real estate in the long term, it is often one’s best long-term investment.