Homeowners in California may be making critical mistakes as it relates to valuing their properties. For instance, some might rely on an algorithm to determine how much their homes are worth. This can be problematic because algorithms may not reflect changes in market conditions or other variables that can drastically alter a home's true market value. As a general rule, real estate websites should be used to track trends in a given area.
A California homeowner who thinks they may have a lien on their property will want to check for one prior to selling. In many cases, a homeowner won't necessarily know if there is a lien without doing a formal search. For instance, those who were involved in new home construction may file a lien without telling the homeowner about it.
As homes in California and throughout the country continue to get more expensive, even midsize cities are starting to become too pricey for buyers. In Nashville, the median home price has increased to $263,000 and saw several years of double-digit price increases. That played a role in net migration falling to 18,700 in 2017. Kansas City has also seen home values increase significantly. In 2017, prices went up 10.3 percent. However, sales dropped 10 percent in that same year.
Sellers in California and in many other parts of the country have the upper hand right now as it relates to the housing market. Homes are selling quickly, and in some case, buyers are engaged in bidding wars to acquire them. However, it is still possible to get a home at a reasonable price even in a seller's market. To do so, it is a good idea to work with a professional real estate agent.
California residents need to spend 37 years on average to save up a down payment of 20 percent on a home. Throughout the nation, it would take a person 20 years on average to do so. However, it may be possible to buy a home without putting 20 percent down. According to a report by the National Association of Realtors 2017 Profile of Home Buyers and Sellers, the median down payment across the country was 10 percent.
A survey of over 1,000 adults done by Bank of the West found that 96 percent of millennials either own a home or want to. However, those in California and elsewhere who want to buy a home should have a plan to save up for one. Roughly 20 percent of those who don't own a home yet say that they will use retirement funds to do so.
California residents who are considering buying a home may need to save for some time to gather enough cash. Nationally, an average person who currently rents will need around 6.5 years to save enough to make a 20 percent down payment on a home, according to an analysis by rental listing company HotPads. In expensive areas like Los Angeles, on the other hand, it can take as many as 20 or 30 years. In less expensive parts of the country, it might take only four years. People in some areas are able to save faster because they spend less money on rent.
The summer months are a popular time to sell a home. However, there are some issues home sellers in California have to address in order ensure that they are able to attract the buyers they want.
Pending sales dropped by .5 percent in May compared to April 2018 according to the National Association of Realtors. Pending home sales were also 2.2 percent lower than the same month in 2017. Part of the reason for the drop was the competitive market and high home prices in California and throughout the country. While there is a lot of interest in available homes, the supply of homes isn't necessarily enough to meet that demand.
There are many reasons to buy a home in California, but it may not be so wise to do so with the anticipation of benefiting from potential tax deductions due to tax law changes. While a home can still be a wise investment, certain tax breaks no longer exist, and others are not as significant. For instance, standard deductions for individuals, heads of household and people married but filing jointly have increased. This reduces possible savings from itemizing when going over the standard deduction by buying a home since this amount is now higher.