Millennials haven’t written off homeownership

Contrary to popular belief, millennials still highly value homeownership, and a majority expects to buy a home in the next five years, according to a CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) survey of young adults age 18-34. C.A.R. President Kevin Brown commented, “Despite recent news reports of young adults moving back home to live with Mom and Dad, millennials haven’t completely written off home buying and still aspire to owning a home.”  Source: C.A.R.

Making sense of the story

  • The survey found that of the millennial renters, the majority (67 percent) rent because they can’t afford to purchase a home.
  • More than half (54 percent) gave homeownership an importance rating of “8” or higher on a scale of 1-10, with 1 being “not at all important” and 10 being “extremely important.”
  • Millennials are optimistic about future home prices, with 59 percent saying they expect home prices will increase in a year, and 63 percent believing home prices will be higher in five years.
  • Of those currently renting, more than one-third (36 percent) would be motivated by affordable home prices to buy now.  Sixteen percent claimed they would be motivated by having the down-payment required to purchase, and 15 percent by an improvement in their finances.
  • One in two millennial renters has student debt, but most don’t feel it is preventing them from qualifying for a mortgage.  Additionally, more than four in 10 (43 percent) don’t have debt that would prevent them from buying a home.
  • Even though many millennials saw their parents struggle through the recession, more than half (59 percent) said the housing crisis didn’t affect their attitude toward homeownership being a good investment.
  • While they aspire toward homeownership, the majority was uncertain or doubtful they could obtain a mortgage now, with 45 percent saying they were not sure, and 33 percent saying they would not be able to obtain a mortgage now.

Read the full story

Talking Points …

  • California home sales remained steady in September, as home price gains eased back from an unusually high increase in August, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
  • Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 396,440 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in September inched up 0.4 percent from a revised 394,700 in August and were down 4.2 percent from 413,850 in September 2013.  September marked the 11th straight month that sales were below the 400,000 level and the 14th straight month that sales have declined on a year-over-year basis.
  • The median price of an existing, single-family detached California home fell 4 percent from August’s median price of $480,280 to $460,940 in September but was up 7.6 percent from the revised $428,290 recorded in September 2013.  The statewide median home price has been higher on a year-over-year basis for more than two years.

From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide. 

Take Charge When Buying a Home

If you approach the home buying process intelligently and with confidence, you are much more likely to buy a house you’ll be proud to call home.

Approaching the task of buying a home can be overwhelming; there’s so much to consider:

  • How much house can I afford?
  • How can I find the best loan?
  • Where will I come up with a down payment, and how much will I need?
  • Should I buy a new or resale home, and which will go up in value?
  • Should I work with an agent or look at homes on my own?

And these questions are just the beginning. Buying a home is one of the largest financial transactions in your lifetime – do your research so you know what you’re doing.

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Dave Thurman Real Estate

 

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California Home Sales Maintain Pace in September

California home sales remained steady in September, as home price gains eased back from an unusually high increase in August, C.A.R. reported today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 396,440 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in September inched up 0.4 percent from a revised 394,700 in August and were down 4.2 percent from 413,850 in September 2013.  September marked the 11th straight month that sales were below the 400,000 level and the 14th straight month that sales have declined on a year-over-year basis.  The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the September pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached California home fell 4 percent from August’s median price of $480,280 to $460,940 in September but was up 7.6 percent from the revised $428,290 recorded in September 2013.  The statewide median home price has been higher on a year-over-year basis for more than two years. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
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Fast Facts

Calif. median home price: August 2014:

  • California: $480,280
  • Calif. highest median home price by region/county August 2014: San Mateo, $1 million
  • Calif. lowest median home price by region/county August 2014:
    Siskiyou County, $127,500

Calif. Pending Home Sales Index:
August 2014: Decreased 4.5 percent from 104.5 in July to 99.78 in August.

Calif. Traditional Housing Affordability Index: Second Quarter 2014: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 10/16/2014 (Source: Freddie Mac)

  • 30-yr. fixed: 3.97 % fees/points: 0.5%
  • 15-yr. fixed: 3.18% fees/points: 0.5%
  • 1-yr. adjustable: 2.38% Fees/points: 0.4%

From C.A.R. ~ C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.

  

Dave Thurman Real Estate

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More buyers are finding homes online and using mobile devices to do it

Buying A Home?

Dave Thurman Real Estate

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East Stockton 1/2 Acre Lot Sold by Dave Thurman, REALTOR

Description: East Stockton 1/2 Acre! Improvements include 36×22 pole barn, 420 sq ft house, 2 storage out-buildings, 56 ft mobile home and 30 ft trailer. All of the structures and buildings are in very poor condition and are not built to code. This property has potential for residential development. 1767 S Sinclair Ave, Stockton CA 95215

As an experienced Realtor® I have helped numerous clients successfully sell their home. I know how to handle every aspect of the sales process – from strategically marketing and displaying your home, to making sure everything is signed, sealed and delivered by the closing date. Contact Dave Thurman

  

Dave Thurman Real Estate

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In Southern California, new homes are rare and costly

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New home prices have soared in recent months in the Southern California region, with the median for the six-county region peaking at $538,000 in June, according to CoreLogic DataQuick. And in affluent ZIP Codes, builders are bidding up already-high land values. Overall, new homes have become all too rare and costly for the average buyer. Source: LA Times

Making sense of the story

  • A surge in higher-end projects has pushed new home prices above their pre-recession peaks, even as prices for existing homes remain one-fifth below their bubble-era highs.
  • In Orange County, the median new home price has topped $800,000.
  • Builders have piled in to pricey ZIP Codes — bidding up land costs there in the process — and polished their projects to a high gloss to woo wealthy buyers with cash or good credit.
  • Projects aimed at the middle of the market remain scarce, and overall home building is off about 60 percent from a decade ago. The shortage of new lower-priced product is one factor making Southern California among the toughest housing markets in the country for middle-income families.
  • While new homes have almost always sold at a premium, that premium has hit new highs this year. In January, the gap between median-priced new and resale homes in Southern California peaked at $151,000, a 41 percent premium for a new house.
  • Several factors contribute to the widening price gap between new and resale homes, housing economists say. For example, competing bids drove up the cost of land in prime areas in 2012 and 2013, which means higher prices today.
  • Some builders have made a conscious decision to move upmarket because they see more profit and upside in catering to wealthier consumers. KB Home is among the builders moving upmarket. The Los Angeles builder, long a specialist in entry-level homes, has shifted to more affluent, “land-constrained” neighborhoods.

Read the full story

Talking Points …

  • A drop in rates last week boosted mortgage applications for both refinances and home purchases, and interest rates continue to slide, according to the Mortgage Bankers Association (MBA). Total mortgage application volume for the week ending October 3rd rose 3.8 percent on a seasonally adjusted basis from the previous week.
  • Refinance applications were 5 percent higher than the previous week, and purchase applications were 2 percent higher. On an annual basis, however, refinance applications are down 32 percent and purchase applications are down nearly 8 percent.
  • Michael Fratantoni, chief economist for the MBA, commented, “The purchase index reached its highest level since July. The increase was led by a 3.7 percent increase in government purchase volume for the week.”

From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.

  

Dave Thurman Real Estate

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