Baby Boomers have officially taken over! They now represent 39% of all home purchases.
Millennials have dropped down to 28% of home purchases.
Median home listed in LA will soon cost more than $1M — up 30% in 5 years
The already dizzying Los Angeles housing market is poised to reach new heights, as the latest data from Zillow suggest that the median home listed in the city will soon cost more than $1 million.
As of June 30, the figure was $975,333, more than a 30% increase from five years prior. Statewide, six other cities were even more expensive and had already crossed the million-dollar mark: San Jose, Santa Maria, Santa Cruz, Salinas and San Francisco.
In Santa Cruz and San Diego — the major markets with the largest increases — median listing prices were up more than 40% over the last five years.
Source: Los Angeles Times - By Terry Castleman
Housing market stuck in biggest freeze in a decade
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Actor/Writer strike is affecting the LA real estate market
When the Writers Guild of America, a relatively small union, went on strike in May, I immediately saw an impact with my showbiz clients who were looking to buy a house. Actors are now also on strike. They command a big presence in Los Angeles. It has 160,000 members. Here is how I am currently seeing the market being affected and how it may potentially be affected in the future:
1) In order to get a home loan, my clients in the entertainment business have to show a paystub dated within the last 30 days. Writers, and those affected by the writer strike, will not be able to show a paystub from their normal writing job for the last 30 days. No paystub means no home loan. As soon as the strike is over, and they get a paycheck, they should qualify to get a mortgage again.
2) If writers, actors, and everyone else affected by these strikes are no longer getting paid, and can't afford to pay their mortgages, will they be forced to sell their homes? Will we see a big jump in LA's for sale housing inventory because of this? It is too early to tell, but this is definitely something to keep an eye on.
I'm hoping the strikes end soon and everyone can happily get back to work!
New listings in June take a big year-over-year hit in LA County
There was about a 41% drop year-over-year for active listings in LA county (2,096 listings in June 2023 versus 3,531 listings in June 2022).
Source: Douglas Elliman Report
CA home prices keep rising
Los Angeles metro area average home price up $25,000 from April 2023 to May 2023.
1/3 of home buyers are paying in cash – who are they?
Redfin found that 33.4% of buyers opted for an all-cash deal in April, the highest that mark has been since 2014.
Baby Boomers make up the largest share of those buyers with more than half of people age 58 to 76 paying in all-cash.
“Homeowners have really been the winners in that scenario … they have equity and are able to make a move with paying all cash,” Jessica Lautz, National Association of Realtors deputy chief economist and vice president of research, told Nexstar.
Another trend that stood out in the data – single women are the most likely to pay in all-cash, Lautz found.
28% single women
27% married couples
20% single men
20% unmarried couples
When it comes to the race of all-cash buyers, Lautz found that 23% were white/Caucasian, 15% Black/African-American, 8% Asian/Pacific Islander, and 8% Hispanic/Latino.
Supply shortage keeps LA home prices afloat
Spring 2023 has shaped up as one of the slowest-selling seasons on record for Southern California.
Low housing inventory has kept home prices afloat.
Luxury home sales in LA plummet after "Mansion Tax" start date
Measure ULA — also known as the “mansion tax” — was passed by L.A. voters in November 2022 to establish the city’s first dedicated stream of affordable-housing revenue. The measure adds a 4 percent tax to sales over $5 million and 5.5 percent tax to sales over $10 million.
We just had the slowest-selling April in 35 years
Home sales across Southern California have fallen steeply, with the number of deals down by almost half.
Buyers closed on 13,201 single-family homes and condos in April, down 46 percent in a year, the Orange County Register reported, citing figures from CoreLogic.
It was the third biggest, year-over-year drop since records began in 1988.
The wrench in the machine is high mortgage rates and low housing inventory, with the local housing market seeing its slowest-selling April in 35 years. It was also the 18th-worst sales month total on record.
Sales in Los Angeles were down 39 percent, according to the Register.
The Southern California market has a 2.5-month supply of single-family homes waiting to be sold, 34 percent below the average since 2008.
The 5 hottest real estate markets in the U.S. are...
Sorry Los Angeles... you didn't make the cut!
A midsize town in Georgia about 75 minutes by car from Atlanta is the nation's hottest real estate market, as a tide of renters flee pricey cities in search of homes in more affordable places.
That's the takeaway from a new Bankrate analysis of nearly 200 housing markets around the country. The personal finance website ranked the top most attractive and active housing market and found that Gainesville, Georgia, was No.1. Bankrate based its ranking on factors such as which cities had the strongest job growth, fastest population growth, largest home value appreciation, lowest unemployment rate and highest rate of homes for sale.
Rounding out the top five real estate markets were:
-Knoxville, Tennessee
-Fort Myers, Florida
-Sarasota, Florida
-Charlotte, North Carolina
Have you ever thought of moving to one of these 5 cities?