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.
Buying a home can be an exciting yet challenging time for people in California. Planning a move into one's dream home can be a major accomplishment in life, but a home purchase also comes with major stresses about securing financing, ensuring a proper inspection and concluding a fair deal. As people plan their goals for homebuying, keeping a few tips in mind can help real estate buyers to make a good choice when making an offer for a new home.
When a California resident wants to buy a house, a lender will run a credit check. If prospective buyers have a low credit score, it may hinder their ability to get a mortgage. However, those with poor credit may still have an opportunity to purchase a home. One option may be to enter into an owner finance arrangement.
Very high rents price many people out of homes in California cities. To raise money for the development of affordable housing, the Los Angeles City Council voted in favor of a fee ordinance that would collect fees from developers. Mayor Eric Garcetti's signature made the linkage fee official, and it is expected to cost developers within the city $93.7 million to $114.3 million annually, according to a report prepared by the Department of City Planning and Housing and Community Investment Department.
Buyers in California may find that they can find better deals on homes in 2018. This is because rising prices and changes to tax laws may reduce the demand for properties on the open market. According to the chief economist of the National Association of Realtors, home sales are likely to remain flat or decline during 2018 in spite of the fact that there are likely to be an increase in jobs over that period.
Divorce and moving are two of the most stressful events a California resident may experience. Moving because of a divorce may be painful, but there are ways to get through it with a minimal amount of stress. For instance, it may be a good idea to designate one person to talk to the agent. This person will also relay information from the agent to the other spouse.
The holiday season may seem to be a less than ideal time to sell a home in California. However, for those who need or want to put their home on the market at the end of the year, there are ways to do so effectively. Ideally, a seller will minimize the lights and other decorations put on the home. Keeping decorations to a minimum provides a neutral look that may attract more interest.
California residents and others who are looking to sell their homes may assume that the process will work itself out with no need to negotiate effectively. However, selling a home can be a complex process regardless of how nice a home is or how nice the neighborhood is. A big mistake that sellers make is to take an offer that is lower than market value.