According to Redfin, a California home seller should list their property on a Wednesday. The real estate brokerage looked at 100,000 home sales to find that properties listed on this day of the week sold for $2,023 more than properties listed on a Sunday. While Wednesday is ideal for those who are looking to make the most from their sale, Thursday is best for those who want to sell their homes fast.
A lot of people in California and throughout the country may be eager to get as much advice about selling their home as possible. However, it is important to understand that not all advice or insight is relevant to an individual's situation. In fact, a lot of advice is considered to be outdated or only specific to certain regions of the country. For example, people may hear that they need to list their homes in the spring.
Los Angeles has emerged as the leading market in the state for luxury residential real estate. In 2017, home prices set records. The top 10 home sales that year exceeded $5.4 million. Both domestic and international buyers have been choosing the Los Angeles area as their ideal location for primary or secondary residences. In 2016, the California Association of Realtors estimated that only 13 percent of luxury homebuyers sought property purely as an investment.
In Los Angeles and other parts of California, it is not uncommon for home sellers to receive several offers from buyers. This is partially because there are fewer homes available on the market. Higher mortgage rates could make it even harder to find an affordable home in markets throughout the country. The interest rate on a 30-year fixed loan has climbed to 4.42 percent from 3.95 percent at the start of 2018.
According to Fitch Ratings, the average home price in parts of Southern California was 5 to 9 percent higher in the fourth quarter of 2017 than what should be expected given economic fundamentals. It also says that 17 percent of all housing nationwide is overvalued by 10 percent. National housing prices as a whole were 3 percent higher than they should be in the fourth quarter of 2017 according to Fitch. Although housing prices are higher than what may be expected, a price correction may not be imminent.
Residents of California may find that bitcoin is useful when making real estate transactions. In 2017, a home in Manhattan Beach valued at $3.23 million was purchased with 3,300 bitcoins. Those bitcoins are now valued at roughly $34 million. Proponents of using bitcoin to make real estate transactions say that it is faster and easier because there is no need for bank involvement.
People bought fewer new single-family homes in January. According to the Commerce Department, sales in this category dropped 7.8 percent during that month to a seasonally adjusted 593,000 units. That was the lowest level since August 2017, and it was the second straight month in which home sales declined. Some believe that this may be a sign of a slowing housing market in California and other states.
The purchase of a first home in California represents an exciting achievement. People typically work and save toward this goal for a long time, but a study produced by the Federal Housing Finance Agency reveals that first-time buyers pay more than veteran home shoppers. Two economists looked at data from 1.7 million housing transactions between 2012 and 2016 and calculated that first-time buyers spent an average of 0.79 percent more than people who had bought homes previously.
Society may think that young people living in California don't want to buy a home because it would make it harder to buy other things. However, the reasons why younger people don't want to buy a home aren't that out of the ordinary. For instance, many who went through the last recession may be wary about using credit. Therefore, they may not have the credit history needed to obtain a mortgage.
California residents and others who are looking to buy homes in 2018 may face a couple of key challenges. First, mortgages are expected to get more expensive as the year goes on. Rates could rise to as high as 4.5 percent by the end of 2018. Second, any available homes that go on the market are expected to be sold quickly. According to an economist at Redfin, home sales will increase by 3 percent in 2018 compared to 2017.