Rising House Prices Lead to Longer Commutes

Posted Leave a commentPosted in Buying a new (to you) home., Housing shortage, Market Direction

It’s no secret that many people dream of living in California. This comes at the cost of an average statewide house price over twice the national average, for a number of reasons. Despite its size, California is limited in amount of vacant land available, as a result of both the high population and topographical constraints. […]

Buyers regaining confidence in the market as homeowner confidence drops

Posted Leave a commentPosted in Financing, Housing shortage, Market Direction

Many prospective home buyers still don’t think they can afford a down payment just yet, but they’re becoming hopeful. Lenders are more willing to loan to first-time buyers, and the sheer demand is, perhaps artificially, inflating morale. Buyers are aware they need to make sacrifices, though. Over half are willing to take up a second […]

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 […]

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 […]

Home-sales-per-household ratio remains flat despite inventory concerns

Posted Leave a commentPosted in Buying a new (to you) home., Housing shortage, Market Direction, Sales Data, Selling your home., uncategorized

The following article is reprinted from first tuesday journal, and was written by Carrie B. Reyes.  We seldom reprint entire articles, however this contains a unique interpretation of statistics worthy of being widely distributed.  Our thanks to first tuesday journal and Ms. Reyes. On a monthly basis, 2.9 homes sold per 1,000 households at the […]

Monthly Market Direction – December 2017

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

To give you the most current information, we personally chart sales activity in the LA South Bay.  This hyper-local information often involves very small numbers of sales to work with on a monthly basis. This December 2017 chart shows the daily changes in the number of homes available in blue, and the trend line in […]