USA Today, states that California is in its third year of intense drought conditions. That article was 9-3-2014. And it is summer, June 10, 2015 today. The country is in its sixteenth year of drought conditions and it’s not looking good…the details in the article by Doyle Rice, of why? is concerning. Doyle describes a ‘Megadrought” in the article, we have a long way before that is the situation. Right now 58% of our state is declared as in a drought. Real estate this summer is, again climbing in price, as the average price range is still in the mid 500k. Prices are up, yes, but inventory is low. What is wrong with this? Well the number of homes on the market has dropped lower, Affordable properties are harder to find, cash buyers are coming out of the wood works, and short sales are rising. This all calculates to crazing California housing market. I believe it will last until people realize that the drought is only going to get worse, not better. People are holding on to their homes longer, knowing their homes will be worth more if they wait to sell. Which, means new buyers have fewer options. It’s the perfect sellers market, making it very difficult for buyers in the 300-400k to find a home. Best case is to find a nice town home/condo and sit on it until the market comes back down, or slows down and allow your income to gain over the next five years or so until you can match the price of homes in SoCal. Now, I still believe that the drought is going to cause a portion of the home owners to leave, because: 1) retirees, can live anywhere, why live in the intense heat when you can move to Oregon or Washington (hint, hint). They’re is a drought there as well. 2) Property is cheap. For $350k you can own acres in our on the outside of Eugene. Or Portland, Salam, Bend (the jewel written as one of the best places in US to live). The property will only go up in those areas because more people will be moving out of California in the coming years. People want homes to raise their children, land to explore in.
This article below from the WSJ showing that in 2013 only high income buyers are buying homes and low and moderate.
Low-Income Home Buyers Left Behind
Source: Wall Street Journal
The number of mortgages made to buy homes in 2013 rose 13 percent from 2012 to 3.1 million, but much of the pickup came from those with the highest incomes. The share of loans made to low- and moderate-income buyers fell sharply. In 2013, about 28 percent of loans to buy homes went to such borrowers, versus 33 percent in 2012. The percentage of loans to high-income buyers rose nearly 5 percentage points to 45 percent.
–The WSJ goes on to state that a comple possible reasons for the reluctance may come form the penalties on default loans, or possible that incomes are still stagnant in a great deal of low-income and middle-income households.
Read the full story
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Biggest Return on Investment for Home-sellers, Say Realtors®
WASHINGTON (January 29, 2013) – Homeowners and those looking to list their homes this spring and want the most return on their investment when it comes to remodeling should consider exterior replacement projects. According to the 2013 Remodeling Cost vs. Value Report, Realtors® rated exterior projects among the most valuable home improvement projects.
We have all heard that ‘curb appeal’ projects offer a greater visual incentive because a home’s exterior is the first thing potential buyers see,” said National Association of Realtors® President Gary Thomas, “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. Realtors® know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.”
DAILY REAL ESTATE NEWS | THURSDAY, JANUARY 10, 2013
Housing prices are growing stronger, showing their largest yearly gain in nearly two and a half years, according to Clear Capital’s Home Data Index Market Report, which covers housing data through December 2012.
Year to year home prices gained 4.9 percent nationwide, according to the report. For 2013, home prices are forecasted to increase by 2.1 percent.
“Overall the housing recovery still shows evidence of pushing ahead,” says Alex Villacorta, director of research and analytics at Clear Capital. “Quarterly home prices mostly mirrored those of last month and suggest that some buyers took pause in the initial winter months. Yet, looking back over 2012, national yearly price gains of 4.9 percent are still strong.”
On November 15, 2012 we received the 2012 October Stats on Home Sales; What energy is on the housing market right now! …things are loosening up. Perhaps it’s the STARS lining up for 12/21/12? Whatever it is keep it coming! The new loan limit in California is $625,000 for one-unit properties. Sales were up 12.5% Orange county Median price was $558,680 Oct 2012 up from $484,390 Oct 2011. Link: http://www.car.org/newsstand/newsreleases/2012releases/octobersales Call or email me for you FREE HOME MARKET VALUE. Renee Baccaro 01718366 (562) 972.9886
Realtor Magazine states that the housing market is steadily picking up in price and building. This will lead to more jobs in the housing industry thus boosting the economy.
Read the entire article: http://realtormag.realtor.org/daily-news/2012/11/06/how-housing-may-help-give-economy-lift?om_rid=AAFNCh&om_mid=_BQmUIUB8vBPuR1&om_ntype=RMODaily
September 10, 2012
No matter which way you do the arithmetic the answer will always come out the same way. And really, that’s a positive. When you own a home you are going to pay off the mortgage and be done with it. If you were to buy a home today in 2042 you will be free and clear, it would be all yours! No more monthly payments…what a great goal to have. You can will it to your children or anyone you like. Yes, after you pay it off you will still have to pay your property taxes, but the monthly dollar amount will be a fraction of what the mortgage was. Consider what rents might be in 30 years. Would you rather be paying an inflated monthly lease or rent in 30 years, or just be paying the taxes on your home? I know what your answer is. It is just that simple. Smart people do everything possible to own their own home. Write out a plan; Scrimp and save for the down payment. Where can you save more money to go towards your down payment/closing costs of your new home? You only need 3.5% if you go with an FHA Loan, or if not 5 to 15% . Or if you can put 20% down you will not have to pay PMI insurance which is a safety net for the banks and lenders. That is usually the price of a modest car payment. Remember do not finance ANYTHING when you are preparing to buy a home. You will lower your price point; Loan to Dept Ratio and have to buy a lower priced home perhaps not in the neighborhood you desire. Be careful when considering buying a new car or financing furniture, remember DON”T DO IT! Just good Advice: Don’t pay for anything new in your rental unit…carpet/flooring, patio covers, sinks, faucets, make sure you have the owner do all the up grades and repairs. That money should not come out of your pocket, but should be going into that down payment savings account.
Today home prices are going up slightly, which means the sooner you can purchase a home the better. Stop giving your hard earned money to your landlord…who is making a mint off you.
Renee Baccaro Realtor “At Your Service”.