Buyer traffic is likely increasing so much because of the severe shortage of existing homes for sale. Realtors are reporting the lowest supply on record and are not expecting the situation to improve anytime soon. While housing starts did rise steadily throughout 2017, they did so very moderately and are still not close to historically normal … [Read more...]
Go Small or Go Home
Sales prices jumped 7 percent annually in November, according to a new report from CoreLogic. That is the third straight month at that pace, far higher than the price gains in the first half of 2017. Low supply and high demand are fueling the spurt and neither of those is expected to ease up anytime soon. With affordability constraints … [Read more...]
Picking Up the PACE
bill aimed at regulating loans created by the Property Assessed Clean Energy (PACE) program is making national industry headlines. The PACE Act of 2017 aims to amend the Truth in Lending Act, a chief regulation governing big banks and mortgage companies, to include PACE lenders. If the bill is passed, PACE lenders would be forced to disclose to … [Read more...]
The Great Divide
Urban areas have benefited in recent years from an influx of younger workers seeking high-paying jobs. At the same time, land-use regulations have constricted supply, helping drive up prices. While the wealthiest homeowners had a rocky ride during the past decade, their homes have recovered most or all of the value they lost during the … [Read more...]
Shifting Demographics: A New Norm
The quickening pace of home sales over the past year included a small rebound from two key segments of buyers who have been missing in action in recent years: first-time buyers and single women. A new normal means interest rates will be staying low – well below 5% for the next several years – amid shifting demographics bringing homebuyers to the … [Read more...]
Declining Housing Affordability & the California Economy
For the first time in nearly a year, declining housing affordability topped lack of inventory as realtors’ number one concern, with 26% stating they were concerned about low housing affordability. However, worries over a tight housing supply were not too far behind, with 19% indicating their concern.Looking toward 2017, the California realtor … [Read more...]
Home Flipping in California
Nearly 40,000 people flipped their properties in the second quarter this year – the most since the second quarter of 2007, according to a recent report from ATTOM Data Solutions. The company analyzed public sales deeds of more than 950 counties, representing 80% of the U.S. population, on homes that were bought and then sold within a 12-month … [Read more...]
Real Estate Firms Remain Optimistic
Good news: the vast majority of real estate firms have an optimistic outlook for the future of the industry’s profitability and growth, according to the National Association of Realtors® (NAR) 2016 Profile of Real Estate Firms. Profitability expectations have declined from the 2015 survey, mainly due to inventory shortages and home-price growth, … [Read more...]
It’s Time to Buy
Good news for current and potential homeowners: while renters are paying more, affordability is improving for those who own their homes. The number of cost-burdened homeowners declined in 2014 for the fourth consecutive year while today low-income renters are getting squeezed out by the more affluent.Three of California’s cities appear on a … [Read more...]
Loan Originations at a High, More Homes For Sale Soon
Real estate predictions for the coming years are generally positive. With strong home sales, near-historic low interest rates, a refi boom, and steady home price appreciation, Freddie Mac's economic team projects that mortgage loan originations will scale nearly $2 trillion for 2016.The projections from the current edition of the company's … [Read more...]