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.
Rising home prices and rising interest rates may have some Californians convinced that they should buy sooner rather than later. However, the cost of a home itself isn't the only factor one should consider when deciding whether to buy or rent. As a general rule, buying is right for those who have a stable job and are confident that they will have a reliable income for several years to come.
Those who are not citizens of the United States may be eligible to buy a home or other real property in California. However, the process of doing so depends on a person's status within the country. As a general rule, a permanent resident goes through the same process of getting a home loan as a citizen. The permanent resident is also likely to qualify for FHA or other government loans.
The total cost of a home in California goes beyond the listed price for the property. Closing costs will also need to be factored into the equation to determine the affordability of a home purchase. The term "closing costs" simply refers to all expenses related to the final step involved with completing a real estate transaction. Such costs are typically shared by both the buyer and seller.
Buyers in California cities and other hot markets throughout America are becoming bolder in their efforts to buy a home. One Oakland real estate agent said that homes are coming on and off the market within hours. On average, homes in the United States lasted 81 days after being listed in 2017. However, in San Francisco, homes were only available for an average of 43 days.
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.