Navigating the Two-Sided Southern California Housing Market: An Interview with Mark Cohen of Cohen Financial Group
The Southern California housing market is experiencing a unique phenomenon, according to Mark Cohen, principal owner of Cohen Financial Group. In a recent interview with HousingWire, Cohen highlighted the two sides of the market, with a lack of housing inventory in the $1 million to $4 million range, while there is an oversupply of inventory for homes priced $5 million and above.
Cohen, who funded $751.4 million in loan volume in 2022, making him the second-ranked loan originator of the year, noted that the market is very competitive for qualified borrowers in the lower price range. However, he also pointed out that there is a slowdown in sales for homes priced $5 million and higher, attributing it to the negative effect of property taxes on the market.
Despite the challenges in the market, Cohen remains competitive by offering non-QM loans to clients who may not qualify for traditional bank loans. He highlighted that a significant portion of his clients are self-employed individuals who do not show all their income on tax returns, making non-QM loans a viable option for them.
Cohen also discussed the trend of upward mobility in the Southern California housing market, where individuals tend to move to larger homes as they accumulate wealth. He noted that unlike other states where people may stay in the same home for decades, in LA, there is a brisk market driven by young couples looking to upgrade their homes as their financial situation improves.
Looking ahead, Cohen remains optimistic about the market, especially with forecasts predicting a drop in 30-year fixed rates in the second half of the year. Despite the uncertainties, Cohen is focused on maintaining strong relationships with clients and lenders to continue his success in the industry.
Overall, the interview with Mark Cohen sheds light on the complexities of the Southern California housing market and how a seasoned professional navigates the challenges to stay competitive and successful in the industry.