May 2017 real estate statistics
Thanks to the CALIFORNIA ASSOCIATION OF REALTORS, you can view a succinct pdf on the market statistics for last month.
In short, it only takes a listing an average of 22.4 days on the market before it’s in escrow, at the median price of $550,200. View more information below:
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
Millennials are saving for financial freedom—not retirement
Source: Yahoo Finance
Millennials often get a bad rap when it comes to financial responsibility. But it turns out those stereotypes may be off base. Millennials are saving more money than any other generation, according to a new study by Bank of America and Merrill Edge. But it’s what they’re saving for that really sets them apart from older generations.
Saving for financial freedom is the No. 1 priority for millennials — 63 percent of millennials said they’re saving a set amount of money to enjoy their desired lifestyle. This is a stark contrast to older generations: the majority of the Gen X and baby boomer generations prioritize their savings specifically to leave the workforce and retire.
This shift speaks to the bigger differences in the ways millennials and older generations view money, and what they prioritize in their lives. While it may not sound surprising that younger workers aren’t thinking about nest eggs as much as older generations, what’s a little different here is that they’re not thinking about retirement as a phase of life, let alone working to afford it. Millennials listed personal milestones as their top priorities: getting their dream job and traveling the world trumped more traditional goals like getting married and having children.
Read the full story from Yahoo Finance here.
Even if you have the financial means to put in an all-cash offer, you may not want to do so.
All-cash offers can be more appealing to home-sellers, but you also need to take into consideration the other aspects of paying so much cash upfront.
- Will you have enough liquidity left? At least a few thousand dollars left in your pocket is ideal. You may have repairs, upgrades you desire to make, and increased utility and maintenance costs for your new house — not to mention your typical costs and unexpected financial needs (such as medical bills or suddenly losing employment).
- What if you easily qualify for a mortgage? Interest rates are still on the low-side, and by obtaining a mortgage to purchase a house, you would be able to keep a large chunk of your finances.
- Paying all-cash means you miss out on a tax break. When you have a mortgage, you are able to receive a tax break on the interest paid to the mortgage lender.
- & 5. reasons are available to read at Finance.Yahoo.com: “5 Reasons Not to Purchase Your Home With Cash.”
California Sales Report
The real estate market in California showed strong gains in both single-family sales and the median price.
This infographic and information is from THE CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.
Compared to February 2016, 2017’s February shows strong gains in both sales and price.
California pending home sales dip slightly in January; Southern California market continues to outshine other regions
Following relatively strong closed escrow home sales over the past few months, California
pending home sales slipped negligibly from a year ago, which suggests a softening in the
housing market in the upcoming months, the CALIFORNIA ASSOCIATION OF REALTORS®
Making sense of the story
- Based on signed contracts, statewide pending home sales decreased in January on a
seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* slipping 0.2
percent from 107.4 from January 2016 to 107.2 in January 2017. On a monthly basis,
California pending home sales were down 9.2 percent from the December index of 118.0.
- Only the Southern California region posted a year-over-year improvement in pending
sales last month, rising 8.1 percent from January 2016 and increasing 10.5 percent on a
monthly basis. Riverside County led the region in pending sales, posting a 16.2 percent
increase from a year ago. Los Angeles, Orange, and San Diego counties also posted
modest year-over-year increases of 7.1 percent, 8.0, and 4.0 percent, respectively. San
Bernardino County was the only area within Southern California that saw pending sales
lower on an annual basis by 2.8 percent.
- For the San Francisco Bay Area as a whole, tight housing supplies and low affordability
contributed to a fall in pending sales of 9.7 percent compared to January 2016. Only San
Mateo County posted an annual increase, rising 5.3 percent from January 2016 after
posting a significant double-digit annual decline (35.3 percent) in December. Pending
home sales decreased 21.2 percent in San Francisco County, 7.1 percent in Santa Clara
County, 24.9 percent in Monterey, and 4.8 percent in Santa Cruz County. A shortage of
homes on the market and poor affordability will likely persist throughout the year, and
impact Bay Area home sales.
- Pending sales in the Central Valley fell 7.9 percent from January 2016 and were up 2.2
percent from December. Within Central Valley, pending sales were down 14.6 percent in
Kern County and 11.8 percent in Sacramento compared with a year ago.