According to a study by Apartment List, 70 percent of millennials around the country have less than $1,000 for a down payment on a home. Fewer than 30 percent of those between the ages of 25 to 34 would be able to save 10 percent of a home's purchase price within three years. Furthermore, only 15 percent would be able to do so in the next year.
The pace of home sales in California and around the country generally picks up during the spring and summer months, but recent reports suggest that today's buyers have a dwindling supply of houses to choose from. Desirable homes are being snapped within days of being listed, and bidding wars are becoming increasingly common. The problem is especially acute at the entry level, and realtors say that it is not uncommon for sellers to receive a dozen or more offers for affordable properties.
California residents who have purchased a home know that completing a residential real estate transaction involves signing copious amounts of documents and dealing with a profusion of legal issues. Deciding how residential properties will be titled is a crucial consideration when more than one buyer is involved, and understanding the differences between joint tenancies and tenancies in common can prevent bitter legal disputes should one of the buyers die.
California residents who wish to challenge a tax assessment may meet with an assessor to make their case. However, the request must be based on solid evidence as opposed to a general complaint that the rate is too high. For instance, it may be possible to get a reduction if the assessment was based on an extra bedroom or bathroom that the house doesn't have.
Buying a California home for the first time can feel overwhelming, but prospective purchasers should keep in mind that they can remain in control of the process throughout. First, it is important to decide how much to spend including closing costs. A person who is interested in a particular house might want to see what comparable homes are worth. Prices may be driven up or down by the local real estate market.
When buying a home in California, it is important to have it inspected by an independent professional. This is because most homeowners will present their homes in the best possible light to prospective buyers, which means that an individual may not see its flaws right away. Typically, the inspection process occurs either before making a formal offer or after the offer has been accepted.
With the Fed looking to increase interest rates again this year, many potential home owners in California may feel that now is the time to buy. However, low supply in many markets has resulted in bidding wars and steep price increases that are blocking many entry-level buyers from the market. An economist with Trulia announced that sellers have the upper hand in 2017, and it is unclear when residential development companies will be able to capitalize on the growing need.
Residential real estate markets in many parts of Southern California have been extremely active in recent years, and industry experts say that the resulting shortage of supply has led to a rapid increase in speculative building. Custom builders are also being attracted to the region by soaring prices. Residential properties in prime parts of Santa Monica are now selling for more than $4,800 per square foot according to the real estate information company DQ News, and prices in other upscale areas like Beverly Hills, Pacific Palisades and Marina Del Rey are also rising fast.
Rising real estate prices in California and around the country have industry experts and officials at the U.S. Federal Reserve worried. A sudden downturn in property prices that began in 2007 shook financial markets and sparked a worldwide crisis a year later, and fears that the same thing could happen again have led to calls for steps to be taken. The Federal Reserve took action in December by raising interest rates by 25 basis points, but a senior Federal Reserve figure believes that other tools should be employed to cool the property sector down.
In 2017, experts believe a couple of primary factors will affect the real estate market in California and in the rest of the nation. Rising interest rates are expected to affect the affordability of homes, and millennials are getting older and are buying homes.