Housing market — one of economy’s bright spots!
During this pandemic, now nearing eight months, the U.S. housing market has become one of our economy’s bright spots. Home sales rose to a new 14-year high in September, bolstered by robust demand and a shortage of homes for sale that is making the housing market one of the brightest spots for the U.S. economy.
Existing-home sales rose 9.4% in September from August to a seasonally adjusted annual rate of 6.54 million, the highest rate since May 2006, the National Association of Realtors said last week. The September sales marked a 20.9% increase from a year earlier.
The latest figures for existing-home sales, which make up most of the housing market, marked the fourth straight monthly increase and one of the best stretches for the housing market in years.
Real-estate agents and economists credit the strong demand for housing to record-low interest rates, a large population of millennials entering home-buying years and a desire for more household space driven by the coronavirus pandemic. As many people work and attend school from home, home shoppers are willing to move farther from their offices in exchange for bigger houses with more outdoor space.
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Home price growth accelerates in August
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 5.7% in the year that ended in August, up from a 4.8% annual rate the prior month.
Sales of previously owned homes, which make up the bulk of the housing market, rose 2% in August from a month earlier, according to the National Association of Realtors, as low mortgage-interest rates and a desire for more space lured buyers into the market. A shortage of homes for sale has led to competition among buyers and pushed home prices higher.
“Current home price growth is exceptionally strong given that the U.S. is an economic recession,” said Selma Hepp, deputy chief economist at housing-data provider CoreLogic. “It is the historically low inventories and record-low mortgage rates that are outweighing economic and employment headwinds and fueling the price acceleration.
The Case-Shiller 10-city index gained 4.7% over the year ended in August, compared with a 3.5% increase in July. The 20-city index rose 5.2%, after an annual gain of 4.1% in July. Economists surveyed by The Wall Street Journal expected the 20-city index to gain 4.3%.
The 20-city index only measured 19 cities in August due to transaction reporting delays in Wayne County, Mich., according to S&P Dow Jones Indices. Price growth accelerated in all of the 19 cities.
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Homeownership rose in third quarter
Here is some more good news — the Commerce Department reported that the homeownership rate rose to 67.4% in the third quarter, up from 64.8% a year earlier but down from 67.9% in the second quarter. The second quarter was accentuated by the start of the pandemic, which threw the housing market into a tailspin.
The department said that its data collection was affected by the coronavirus pandemic, and its survey response rates declined from last year, which could affect the accuracy of its second- and third-quarter estimates.
With low mortgage rates, the housing market is going through an unparalleled period of ups/downs, as we are seeing on the Westside. We’re seeing an increase in sales in the lower price categories, driven by these low rates, but our total sales volumes have lagged behind last year at this time.|
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What will homes be worth in 2030? California leads list
Homeowners are watching their home values climb significantly this year, and prices are expected to continue to appreciate over the next decade. The National Association of Realtors reported that the median existing-home price for all housing types in September was $311,800, a 14.8% increase compared to a year ago.
But how high are prices poised to go over the next decade? A new study shows that home prices in the U.S. have increased by nearly 49% in the past 10 years. If they continue to climb at similar rates over the next decade, U.S. homes could average $382,000 by 2030, according to a new study from Renofi, a home renovation loan resource.
To estimate property prices in 2030, Renofi analyzed the average price in every state and the 50 largest cities, comparing them from September 2010 to September 2020.
California leads the list for valuation projected for September 2030 at $1,048,100, with Hawaii next at $899,627, followed by Washington – $782,708. West Virginia is last at $128,415.
Four out of the top five cities are from California — San Francisco leads with $2,612,484, with San Jose next at $2,251,703, Oakland, $1,713,554, Seattle at $1,540,583 and Los Angeles, at fifth place is at $1,375,638.
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Renters Beware!
What the pandemic provided for many home and apartment renters — is refuge from monthly payments. For those who opted to forgo their rent payments, the day of reckoning will eventually come. A housing crisis centered on the vast apartment and home-rental markets is emerging in the U.S., threatening to send millions of renters into eviction and leave landlords short billions of dollars.
A large number of renters have been unable to pay some or even all of their rent since March, when the pandemic temporarily shut down most businesses. Many businesses remain closed or only partially open, pushing renters into unemployment and draining their savings.
Federal and local eviction moratoriums have protected many of them from losing their homes if they missed payments during the pandemic. But the national eviction ban and some state and city protections are set to expire by January or sooner. Renters will be on the hook for months of missed payments, which even those who have jobs could struggle to pay.
Estimates of total outstanding rent debt vary widely. Yet by any measure, the fallout from missed rent payments could imperil a large swath of the U.S. population and wash over broader segments of the economy.
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Urbanites haven’t given up on ‘urban’…..
While you are reading about ’thousands moving out of the city to suburbia’ or beyond (like in ‘rural’), it is true: There have been many fed up with the congestion, closed in society and lockdowns. But confirmed urbanites are resilient and getting creative. For example, urban buyers are looking for different amenities in light of the pandemic. Clients are looking for small rooms, formerly known as a maid’s room, which have suddenly come back.
These rooms, like smaller extra bedrooms, are becoming the ’new work zones for family members. Flat desk, bookshelves, Internet connection, printer, and voila — you have your own special workspace. Working from home has caused these ‘pop-up’ work areas, springing forth from existing home space.Urbanites are also upgrading rooms for ‘fitness’ and exercise training. Getting your steps to/from the office isn’t working anymore, so urbanites are buying treadmills or other high-tech machines that transform your mind and body at the same time.
Large…and I mean large…video screens/walls. Large screen TVs are flying out the door of retailers. Home theaters have taken over wall space since movie theaters are closed and going out of business. No worries…Netflix, Apple+, or Disney+ make it all so quite easy to stay comfy at home.
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Saving your sanity in small places…
Missing your spacious office? This pandemic is forcing many of us to ‘adapt’ to this remote working concept. Working from home has plenty of pros—wearing your fuzzy slippers and spending quality time with your pooch are among them. But big challenges can arise from small spaces when you don’t have adequate elbow room to get your work done effectively. How can you survive with your performance and sanity intact? Consider your mindset, your communication, and some basic survival skills.
For example, getting the right “mindset” is your first priority. You’re not in your spacious office — far from it, so adjusting your thinking to this new, ‘homey’ environment is a must. And one of the most important elements of your mindset is ‘empathy’ — consider what your roommate or family is going through, too. We’re all in the same boat.
Be flexible — one must adapt to new challenges such as outside (or inside) distractions, like kids, sound disruptions (TV, music), and, yes, the refrigerator. Also, planning is a must…plan ahead more because now you have a home calendar merged with a work calendar…be disciplined. It’s easy to just ‘wander’.
Communication with others is key. Set up ground rules, boundaries on what is permitted during shared work times. Be respectful of others as they should be to you as well. And of course, there are basics — like Internet usage (do you have enough speed/capacity…is wi-fi working where it needs to be?) Most importantly — you and your family’s well being. Keeping in shape, have agreed-on break times, learn to anticipate, and yes, have some fun times, too. In the end, your sanity (and those around you) is so important…especially during these stressful times.
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Recycling – unused or old medicine in particular
have long shared with you the information on recycling residential special materials (paint and solvents, automotive materials, among other things), and electronic waste. On Saturday, I discovered that we can also take those meds to the S.A.F.E Collection Center at UCLA
For weeks I have been carrying around a plastic bag filled with unused meds from my Mom not knowing where to bring them and to safely dispose them. I had been told the pharmacy at the UCLA Medical Center took them but every time I went there it was closed. Now we can take them along with the e waste any time the Collection Center is open (the Collection Center only takes e waste on Saturday. For specific information as to what they will and will not take, please give them a call.
Their information is: UCLA Safe Collection Center, 550 Charles E Young, West (along fraternity row on the west side of campus) on Thursday, Friday & Saturday – 8:00 am – 2:00 pm, 1-800-988-6342. It is all easy – peasy!. you must put everything in the trunk of your car, wear your mask, and they will take what you have out of the trunk. Be specific as to what you want them to take, one time I had some bags of things I had just purchased in the trunk and they took those too, fortunately I was able to get them back! .I always drive away feeling like I have done my good deed for the day. Done!
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Keeping up to date
I have a number of listings both for sales & lease coming up in the next few weeks. For a varied number of reasons, we are not ready yet. The properties are located in Bel Air Crest, Mountaingate and Beverlywood. I will be sure to let you know when they are on the market.
Be sure to watch for the winners for my on-line Halloween Contest. All of the carved pumpkins are amazing. If you want to participate in my next on-line ONLY contest which will be in the next month or so, I will need your email address.
For those of you who have been following the situation with the proposed construction of the Berggruen Institute. In a lawsuit filled by the Mountaingate Open Space Association along with the other homeowner organizations, Berggruen suffered a defeat for their proposal in a California Court on the 13th of October. The fight will continue. Stay tuned for more updates as they come along.
Just learned from a reliable source that come Jan 1, Stoney Hill security will be merging into Crest Promontory and that those residents will be writing 3 checks rather than 4 as the have been doing and that The Vista residents will be paying for their security through their MOSMA dues.
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Please reach out to me for all of your real estate needs. I AM HERE FOR YOU
Stay safe and if you have not already done so, VOTE… EVERY VOTE COUNT
Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at carole@caroleschiffer.com www.caroleschiffer.com
CalBRE 00677619
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