24% of CA households could buy a $815K home

Housing affordability in the third quarter improved slightly from the prior quarter as mortgage rates remained low while prices began to level off.

24% percent of California households could afford to purchase the $814,580 median-priced home in the third quarter of 2021, up from 23% in second-quarter 2021 but down from 28% in third-quarter 2020.

A minimum annual income of $148,400 was needed to qualify for the purchase of a median-priced home in the latest quarter in the state.

With interest rates expected to rise and the state median price projected to climb further in 2022, the housing affordability condition will likely get worse in the coming year.

Source: California Association of Realtors.

A dip in homes sales like in October

The flu season is going to look very different this year.

When everyone starts to get the flu in October, all we are going to hear about in the news is that the second wave of the coronavirus is coming.

I’m not a doctor so I don’t know if that will happen or not.

However, I do know that since a lot of people will be sick with the flu, the perception by the public in LA county will be that a second wave is inevitable.

Because of this perception, there will be fewer homeowners willing to put their property on the market, just like in late March after the stay-at-home order was issued.

I believe we will likely see a dip in home sales during that time in October.

I’m optimistic things will settle down by the time we get to December.

Hopefully, the homeowner’s perceptions will change once the news gets better.

Episode 38 of The #AskDanielLosAngeles Show

On this episode, I answer the following four real estate questions:

1) What's going to happen in the real estate market for the rest of 2020?

2) What do mortgage interest rates look like for home buyers right now?

3) Has it been difficult to show homes during the pandemic?

4) What's the hardest real estate deal you ever had?

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To tour all for sale homes, you now need a pre-approval letter

It wasn't this extreme before the pandemic, but I am seeing about 40% of all homes on the market now require a buyers loan pre-approval letter just to get in to see the property.

With the Coronavirus still playing a roll in all of our lives, more and more sellers only want to grant access to serious buyers.

I anticipate this percentage to only go up from here.

The days of casually looking at homes on the market are over.

If you want to see ALL the homes on the market, have your pre-approval letter ready!

P.M.I.

It's not the end of the world if you have to get P.M.I., but it should be avoided if possible.

If you can put at least 20% down when buying a home.

By doing so the lender won't require you to get P.M.I.