Tag Archives: housing affordability

California Real Estate: Housing Affordability in the 3rd Quarter

The latest on the California real estate market.

Take a look at the infographic below to see the percentage of households who can afford to buy a median-priced home.

Real estate affordability in California

This infographic is from CAR.org.

All About the Current California Real Estate Market

Interested in what the real estate market in California is doing?

The CALIFORNIA ASSOCIATION OF REALTORS recently released a few pieces of information on the California housing market. Take a look at their infographics and details here:

Housing affordability went up to 32% in the 1st Quarter of 2017. This means that 32% of California households can afford to buy a median-priced home.


The average price for homes that are selling in California is $478,000. And in April of this year, 401,000 houses sold.


 


Want to chat more about the California real estate, specific buying or selling needs, or other real estate questions? Give me a call! 

John A Silva | (619) 890-3648

Money Monday: California Housing Affordability

Higher wages and seasonal price declines affect California housing affordability.

housing market forecast

• “Thirty-one percent of California households could afford to purchase the $511,360 median-priced home in the fourth quarter, unchanged from third-quarter 2016 and up from 30 percent in fourth-quarter 2015.” (“4th Qtr 2016 Housing Affordability”. CAR.org. 9 Feb 2017)

• “A minimum annual income of $100,800 was needed to make monthly payments of $2,520, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 3.91 percent interest rate.”

Read all about 2016’s housing marketing in the fourth quarter, in the CALIFORNIA ASSOCIATION OF REALTORS’ article here: “4th Qtr 2016 Housing Affordability“.

 

Money Monday: Housing affordability worry

Homebuyers getting more anxious about affordability

Source: Investors Business Daily

Homebuyers in the U.S. are growing more anxious about their ability to afford a dwelling of their own, and that’s especially true of millennials, says a new survey from Redfin. Another concern they have is high rent, with nearly half of first-time homebuyers surveyed saying that it pushed them into the housing market. And while low inventory was blamed as a major factor in July’s drop in sales of existing homes, that was third on the list of homebuyers’ worries, after affordability and competition from other shoppers.

money house

Making sense of the story

In previous surveys, the second- and third-most cited concerns made up a far higher percentage of total responses. Last year it was 31.4 percent, while in May it was 33.5 percent. In other words, affordability is gaining prominence as the number one concern among buyers.

Among the 1,887 homebuyers participating in the Redfin survey, those who said affordability
was their biggest concern grew to 28.1 percent this summer, compared to 26.6 percent a year ago. Anxiety about competition in the market again got the next-biggest share of responses, but it was cited by only 13 percent this year, compared to 17 percent in 2015.

Worry about lack of inventory again was third, but fell 2 percentage points — from 14.4 percent
of responses to 12.4 percent. The only other response reaching double digits was the share of
homebuyers who had “no concerns,” which increased slightly to 10.4 percent from 9.5 percent.

Among millennial homebuyers, nearly a third said affordability was their top concern. About half that number (16 percent) expressed worry about competition from other buyers, while about 1 in 8 (12 percent) were most troubled about the available housing inventory. And slightly more than 1 in 10 said they were the most uneasy about coming up with a down payment.

Full story: www.investors.com/news/real-estate/homebuyers-getting-more-anxious-about-affordability-redfinsays

Money Monday: Challenges Hamper the Housing Recovery

As the Housing Recovery Strengthens, Affordability and Other
Challenges Remain: Harvard Study

Source: Harvard

The national housing market has now regained enough momentum to provide an engine of growth for the US economy, according to The State of the Nation’s Housing report released this week by Harvard’s Joint Center for Housing Studies. However, several obstacles continue to hamper the housing recovery—in particular, the lingering pressures on homeownership, the eroding affordability of rental housing, and the growing concentration of poverty.for rent

Making sense of the story

  • On the renter side, the number of cost-burdened households rose by 3.6 million from 2008 to 2014, to 21.3 million. Even more troubling, the number with severe burdens (paying more than 50 percent of income for housing) jumped by 2.1 million to a record 11.4 million.
  • The national homeownership rate has been on an unprecedented 10-year downtrend, sliding to just 63.7 percent in 2015. Tight mortgage credit, the decade-long falloff in incomes that is only now ending, and a limited supply of homes for sale are all keeping households—especially first-time buyers—on the sidelines.
  • The report finds that income inequality increased over the past decade, with households earning under $25,000 accounting for nearly 45 percent of the net growth in US households in 2005–2015.
  • The report finds that rent burdens are increasingly common among moderate-income households, especially in the nation’s 10 highest-cost housing markets, where three-quarters of renters earning $30,000–45,000 and half of those earning $45,000–75,000 paid at least 30 percent of their incomes for housing in 2014.
  • Federal assistance reaches only a quarter of those who qualify, leaving nearly 14 million
    households to find housing in the private market where low-cost units are increasingly scarce.
  • Low-income households with cost burdens face higher rates of housing instability, more often settle for poor-quality housing, and have to sacrifice other needs—including basic nutrition, health, and safety—to pay for their housing.
  • The report notes that a lack of a strong federal response to the affordability crisis has left state and local governments struggling to expand rental assistance and promote construction of affordable housing in areas with access to better educational and employment opportunities.

Read the full story here. This concise intro to Harvard’s article is from the CALIFORNIA ASSOCIATION OF REALTORS.

Housing Becoming Less Affordable

Real estate prices and interest rates are on the rise.

Both rising interest rates and higher-priced homes the first part of 2015 are lessening home affordability for would-be homebuyers.

  • Only 30% of potential homebuyers can afford the average-priced, single-family residence
  • The median price of a single-family home is $485,100
  • To qualify for a home loan to buy such a home, the average annual income needed is $96,160
  • The median-priced home requires a monthly payment of $2,404 (which includes taxes and insurance on a 30-year, fixed-rate loan)

PricesontheUptickInfographic from CALIFORNIA ASSOCIATION OF REALTORS.

9 Reasons to be Optimistic About Housing

housing marketThere’s a lot of negative information and news about the real estate market, but not to worry–there is a brighter side to housing! In fact, there are nine reasons to be optimistic!

There’s been a lot of positive signs for a housing (and broader economic recovery) coming out lately. Here are nine reasons we might be looking at a better 2012 than 2011 in the residential construction market:

  1. Unemployment dropped to its lowest point since 20092. Pending home sales up 10.3 percent in October
  2. Pending sales up 10.2 percent in October
  3. Housing affordability at record levels
  4. Consumer confidence up heading into year-end
  5. Existing home sales make surprising October jump
  6. Residential construction spending up 3.4 percent
  7. Construction industry adds most jobs since 2006
  8. Builder confidence at 18-month high
  9. Single-family starts increased in October

Read the article in full at HousingZone.com: “9 Reasons to be Optimistic About Housing“.

California housing affordability rises in Q3

California Building Industry AssociationHousing affordability increased in 22 of the state’s 28 metropolitan areas in the third quarter, according to the California Building Industry Association’s Housing Opportunity Index (HOI).

On a statewide basis, the HOI found that a family earning the median income could have afforded 63.5 percent of the new and existing homes that were sold during the third quarter, up from 61.3 percent in the second quarter.

The San Francisco, San Mateo and Marin County metro area was once again California’s least-affordable metro area for the twelfth consecutive quarter, and second in the nation, with just 32.9 percent of the homes sold being affordable to a family earning the median income, up from 27.5 percent in the second quarter. Orange County was California’s second least-affordable market and fifth in the nation (43 percent), followed by Los Angeles County (45.1 percent) and Santa Cruz County (47 percent).

Read the article from the California Building Industry Association here: “California Housing Affordability Rises in Third Quarter, CBIA Announces“.