Low Interest Rates Keep Housing Market Going

Posted: 5/16/2019

Recently lowered interested rates have boosted California’s housing market this past month, with home sales staying level after a strong February and March. According to the California Association of Realtors, the median home price jumped from $534,140 in February to $564,820 last month, a 5.9 percent increase. Not all areas saw an {...}

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Red Flags Could Affect Housing Market

Posted: 3/27/2019

An alarming report by the Federal Reserve indicates American citizens collectively owe about $13.54 trillion in debt and that for the past four years individual debt has been rising. Compared during the height of the great recession in 2008, individual Americans collectively were $12.7 trillion dollars in debt. The biggest red flag in {...}

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Listings Balloon as Sales Slow

Posted: 11/27/2018

For the past seven years, the California market has seen tremendous gains. As mortgage rates have risen, the housing boom appears to be fading. Sales have slowed, while inventory has grown and listing prices have begun to drop. According to Christopher Thornberg of Beacon Economics, the current slowdown is “a bump in the road.” {...}

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Existing Home Sales Stall

Posted: 9/21/2018

Sales of existing single-family homes have fallen for four straight consecutive months according to the newest figures from the California Association of Realtors. In the Southern California region, an eight percent drop in home sales compared to this time last year shows the once hot sales market is slowing down. Home prices rose 0.8% {...}

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Homeownership Burden Increasing

Posted: 7/03/2018

Rising housing and living costs have reached all-time highs in many Counties throughout California, which is bringing new attention to the struggle and burdens of home ownership. If you pay more than 30 percent of your gross income, meaning the income you earn before taxes, you are considered “housing burdened”. This means you may not {...}

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Owner Occupied Homes at Record Low

Posted: 4/15/2018

High prices have forced a growing percentage of families to postpone buying a house. California now has a record-low homeownership rate, and foreign buyers and investors are the likely driving force of higher prices. In 2006, about 10 percent of single-family homes were purchased in cash. During the recession 33 percent were purchased {...}

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Tax changes could hurt affordability

Posted: 1/15/2018

The tax bill President Trump signed into law last month may bring changes to California’s real estate market. Because California is one of the most expensive housing markets in the country, changes to interest deductions and the doubling of the standard deduction are seen as having a negative impact for California homeowners and {...}

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Affordability at lowest level since crash

Posted: 11/06/2017

Tight housing inventory across the state has driven home prices higher and reduced the purchasing power for potential buyers. The percentage of home buyers who could afford the median-priced, existing single-family home has fallen to 28 percent, a 10 year low. Affordability hit its peak during the first quarter of 2012 at 56 percent. {...}

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The brewing California housing crisis

Posted: 8/29/2017

New California economic reports show that we are currently head deep in a new housing crisis. Homeownership, once part of the American dream, is at its lowest rate since World War II. Roughly half of the state’s homeowners are struggling to afford their mortgage and 70 percent of lower income Californians see most of their paychecks go {...}

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Peak summer markets and increasing interest rates

Posted: 7/12/2017

According to the newest market data from Realtor.com, 40% of the busiest housing markets this summer are in California. With a housing shortage and limited numbers of homes for sale, prices have continued to increase. With home prices rising, middle and lower income buyers are struggling to find affordable homes as new listings are {...}

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