Market direction unclear as statistics suggest opposing trends

Posted Leave a commentPosted in Financing, Market Direction

The end of February, interest rates were at a four-year high, with 30-year fixed rate mortgages averaging 4.40% and 5-year adjustable rate mortgages averaging 3.65%. At the same time, interest on treasury notes is down. This means investors are abandoning bonds and now buying mortgages. Despite changing their methods, investors don’t have any concerns about […]

How Trump’s tax plan affects Real Estate in California

Posted Leave a commentPosted in Market Direction

Included among the many tax changes in the 2018 Republican Tax Plan are the following major changes: nearly doubling the standard deduction, causing fewer people to itemize beginning in tax year 2018; limiting state and local taxes (SALT) to $10,000 per tax return; reducing the mortgage interest deduction (MID) from $1 million to $750,000; making home equity loans (HELOCs) no […]

Finding affordable housing gets easier

Posted Leave a commentPosted in Financing, Housing shortage

New laws passed in September of 2017 are aimed at allowing for and funding the construction of lower-income, higher density housing in California.  Following are synopses of the more impactful changes.  Elsewhere on this blog is a more in depth article on Accessory Dwelling Units, or ADUs, also known as grannie flats. ( SB 2, […]

Higher interest rates and demand predicted in coming few years

Posted Leave a commentPosted in 55+, Buying a new (to you) home., Market Direction, Selling your home.

Global markets are stabilizing, which will cause interest rates previously held in check by cautious investors to increase. This predicts a slight downtown in 2018, since currently sales volume is low and prices are high, so rising interest rates will initially decrease demand from prospective buyers who can no longer afford to qualify for what […]

Population growth is far exceeding new construction in California

Posted Leave a commentPosted in Housing shortage, Market Direction

Between 2010 and 2016, only one new housing unit was built for every four new residents in California, half the rate of most states in the nation. Builders are slowing down after the Millennium Boom, a period between 2000 and 2007 of overbuilding that led to an excess of 338,000 new housing units in California. But […]