Fall 2014 Quarterly Updates
Fire season and drought top autumn’s current events
In years past, I have always marveled at the change of seasons, however slight they may be in Southern California, however this year, we continue to face the dangers of a fire season as rarely seen combined with the worst drought in our state’s history. Needless to say, it is critical that we all pay attention to the Los Angeles Fire Department’s warnings about brush clearance and making sure that any debris and unnecessary brush is cleared from your property. We have had recent fire scares, so with the lack of rain the fire danger is exceedingly high. With the drought, we also have an increase in wildlife visitation….so please be on the lookout for animals in your neighborhood (and for your pet’s safety, too).
On the real estate front, there is a great deal of news affecting our future — some of it good; some not as good as we would like. For example, according to a recent study on just how the high levels of student loan debt is going to translate to lost home sales, student loan debt is definitely having a drag on the market Say, 414,000! That’s how many homes sales will be lost this year, valued at more than $83 billion. That’s equal to about 8% of all home sales. It’s estimated that those under age 40 have approximately $250 per month in obligations to pay down their student loan, enough to crimp their ability to buy a home — new or used.
On the other end of the spectrum, seniors are struggling with their transition to retire by trying to figure out how to reduce their mortgage and still live comfortably in retirement. Nearly a third of homeowners 65 and older had a mortgage at the end of 2011, up from 22% in 2001, and according to the analysis from the Consumer Financial Protection Bureau, compared to just $43,400 a decade earlier senior debt burden grew — with older homeowners owing a median of $79,000. For most seniors, the decades-old goal was always to retire with no mortgage — the home would be paid off, debt free. But during the recent recession, many had to dig into their equity just to survive, so what many are doing is unloading their home for a condo — reducing their monthly mortgage to a manageable level. Those who still need additional monthly income (like from a job), are finding it difficult to get employed even though the economy is slowly recovering. In the discussion on what to do next, every senior faces the issues of where to live — either in full retirement, partial retirement, or to just keep working.
For everyone who is celebrating.. Happy New Year! I hope you have an easy fast!
Click here to see the Bel Air Crest Quarterly Market Update
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Click here to see the Lower Casiano Area Quarterly Market Update
Click here to see the Moraga Drive Quarterly Market Update
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Click here to see the Westwood Hills Quarterly Market Update
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