Two words alone have, rightly, loomed large in discussions about California’s housing market this year: inventory and affordability. A tight supply of homes available for sale has helped to keep strong upward pressure on home prices, which in turn has caused further deterioration of affordability in the state. As housing becomes more expensive, and the cost of living between expensive central areas and outlying counties expands, people begin to make decisions on the trade-offs between living farther out (and in larger houses) and commuting longer to their jobs. For your next purchase or rental who’s got your back? Subscribe and/or Follow me on Twitter for strategies to navigate the housing market!
June, July and August are considered peak sales months for real estate so it is a surprise that sales cooled in July of this year. As VERY strong demand in rentals persists, this might be an early sign of buying demand weakening by California house consumers.
May sales moving higher, California real estate getting hotter into summer!
Renters in Los Angeles will find this one of the MOST IMPORTANT stories about our housing crisis written to date! The days of 3-4% rental increases are well behind us…why? AN UNSTOPPABLE GROWING DEMAND FOR HOUSING. I’m adding the link for all to read. When I explain to renters that increases of 7-10% are not uncommon their faces turn flush. Its the new, “New.” Here’s the link:
http://www.myvoicenation.com/promotions/viewEmailByDistLstDelivId/vmg-80161/1/#.Vv_5Lk0rnX4.twitterLA Weekly Rental Crisis
An interesting note about millennials is that, at a median income of $35,000 per year, it could take 10 years before a house purchase will be considered affordable, assuming a 20% down payment on a house in order to avoid personal mortgage insurance on a home mortgage.
This is a great example of home improvement projects homeowners are taking on to add value to their homes.