🔴 4th quarter housing affordability | 5 California Counties under $350,000 (Luxury Homes for sale)
- 5 California Counties under $350,000
- 4th quarter housing affordability
- Bay Area 10 County Report
- Luxury home of the week
- Willow Glen Listings
- Your Local Housing Market Report
- Money Smarts Starts Here:
- Homebuyer Workshop
Title: 4th Quarter Housing Affordability: 5 California Counties with Luxury Homes Under $350,000
In this blog post, we will dive into the current state of housing affordability in California's fourth quarter. We'll explore five counties in California where the median price of homes falls below $350,000. Additionally, we'll take a closer look at a luxury home of the week and provide a snapshot of the housing market across ten counties. Let's get started!
Mortgage Rates and Affordability:
According to recent speculation, mortgage rates are expected to drop below 6% in 2024. While this is good news for the housing community, it poses challenges in terms of affordability. Lower rates attract more buyers to the market, increasing competition but exacerbating the affordability issue. Santa Clara County and the Bay Area are particularly affected by the low supply of housing, which continues to drive up prices.
Housing Affordability Index:
The California Association of Realtors presents an insightful report on the housing affordability index for the fourth quarter. In California, approximately 15% of the population can afford a house priced at $833,000, which represents the median price. Notably, this includes both single-family houses and condos or townhouses. In Santa Clara County alone, the median price is around $2.2 million, emphasizing the need to find more affordable options.
Five California Counties with Median Price Under $350,000:
For those struggling to find affordable housing in California, there are five counties worth considering. These counties offer median prices under $350,000. Let's explore them:
1. Glenn County: Located in the Central Valley, Glenn County presents an affordable option for prospective homeowners.
2. Lassen County: With a median price of $250,000, Lassen County offers an opportunity for individuals looking for budget-friendly homes.
3. Siskiyou County: Featuring a median price of $306,000, Siskiyou County provides an attractive option for those seeking affordability.
4. Tehama County: With a median price of $308,000, Tehama County is another county that offers affordable housing options.
5. Lake County: Situated near Clear Lake, Lake County is an area where median prices hover around $350,000, making it an accessible choice for buyers.
These counties provide alternatives for individuals who wish to remain in California while staying within a reasonable budget.
Bay Area 10 County Report
Taking a broader view, let's explore the current state of the housing market across ten counties. While some reporting discrepancies have been noted, it is still valuable to understand the trends. Year-to-date, there have been 463 home closures, showing a healthy market. In the Bay Area, the volume of sales has reached $3.5 billion, and the supply of homes stands at approximately 10 days. However, the number of active homes for sale averages around 400, indicating a need for increased supply.
Your Local Housing Market Report https://hmbt.co/bT7qRJ
As we move forward, we anticipate the supply of homes to rise as more sellers prepare to enter the market. However, it is unlikely that we will see the same level of supply as in 2023 or 2021 during the previous housing booms. Consequently, prices will continue to rise, particularly in the Bay Area. Nonetheless, for those who aspire to stay in California and keep their expenses low, the five counties highlighted earlier present excellent options.
In conclusion, the fourth quarter housing affordability situation in California reveals a mixed landscape. While mortgage rates are projected to drop below 6%, potentially attracting more buyers, the issue of affordability persists due to limited housing supply. However, there are five counties where median home prices remain below $350,000. As the market evolves, prospective buyers and homeowners must stay informed about the latest trends to make informed decisions.
TRANSCRIPT: Introduction and Overview Mortgage rates are expected to drop below 6 percent in 2024. Yeah, pretty excited about that. Fourth quarter housing is affordability. We have five counties in California that are, that have a median price under 350, 000. And we will look at a luxury home of the week and Willow Glen home of the week. And then also the 10 county market snapshot. Let's get moving. All right. Really quick. We'll just go into this little piece right here. I want to show it to you like this. So it's a little bit bigger. Speculation on Housing Interest Rates There's some speculation that houses are going to drip or the housing interest rates are going to drop below 6%. Now that's good for the housing community. However, it's how it's hard on affordability because when rates get lower, more people entering the market means more. More competition is good, but right now we're brimming at affordability and affordability is just one of those things where people are having a tough time getting into houses and there's such a low supply here in Santa Clara County, as well as the Bay Area, that prices are still going to push up because there's just not enough supply to meet the demand that we have right now. Now in other parts of the country, we're seeing supply shoot up and houses, house pricing coming down a little bit, but not as much as you would think, because it's still at an affordable place, which is a good segue to get into this next thing from car, California association of realtors. It's a big report and you can link to it. In my blog, there's a link to my blog, this in my blog. Housing Affordability Index Basically what it talks about is the last fourth, the fourth quarter versus the second quarter, where we are, this is the housing affordability index, meaning in California, 15 percent of the people can afford an 833, 000 house, which is the median price of all of California. These numbers aren't specific because I can specifically tell you that Santa Clara is 1. 7, however, that's not single-family houses. That's single-family houses as well as condos and townhouses. So keep that in mind. It's actually 2. 2 million and I promise to show you five, five counties that are under 350, 000 in median price. Affordable Counties in California So if you're struggling, you don't have to get out of California if you don't want to, but you have to travel a little bit. Let's get moving. Down here Glenn County in Central Valley. I don't think I've ever been to Glenn County. That's one. Lassen is 250. Siskiyou, 306. Tahoma, that's four. That's 308. And there's one more, Lake County. That is, I want to say it's up the Clear Lake area. I think that's where that is. And I've been there. This is a very telling thing. Telling story because look, if you're, if you make 800 or 88, 000 a year, you can afford to buy a medium-priced house and your payment P I T I principal interest tax and insurance would be about two 20 that is based on these rates right here again. Rates. Will vary depending on your circumstances, if it's FHA or what have you wanted to talk about that real quick. Delinquencies and Foreclosures Delinquencies are ticking up just a little bit. But not enough to be a concern. These are the actual number of foreclosures and delinquencies by the period up until the fourth quarter of last year. So it's taking up just a little bit, but it's still nowhere where we have to really concern ourselves about it. Could this be a harbinger of? A disaster. Absolutely. Again, I don't think it is especially here in Santa Clara County, people are still going to have jobs. People are still going to buy houses unless they block them. And if you remember when 2008, and 2009 rolled around, when we had all this going on, banks pulled back. They made it really difficult for you to close a loan. It took a long time to close a loan because they were afraid that they were doing the wrong thing. All right. They're like, Oh, everything's great. All we had to do is fog up a mirror and we'll give you a loan. I don't care how much money you can do. Pick a pay all those different stuff. And it was really all those toxic loans. And then once they got caught with their hand in the cookie jar, they had to pull back and re-set their values of how to create a loan or how to close on a loan fund alone. So just keep in mind that things can happen. Mortgage rates are set to come down to below 6%. I wouldn't wait, because right now, prices being where they are, people are starting to warm up and getting into the market. If everybody waits until the rates go down, there's going to be a lot more demand than there is supply, than what we're already, what we're already experiencing right now. I'm not selling you anything. I'm just telling you this is common sense of what human nature happens. This is what's going to happen. And keep in mind, these prices will continue to go up. Home prices will continue to go up in California unless there's a massive World War Three or economic global economic shutdown or something unheard of. It could be the car market. I talk about the car market a lot. It happens quite a bit. I'll jump into this real quick so you can look at it. Luxury Home of the Week
This is the luxury home of the. Week fire thorn where way it's not my listing. This is only 40 million. Some embed nine baths 6. 68 acres and 11, 000 square feet. It's a gorgeous home. Just everything about is just beautiful. Everything is just modern Fantastic. The only thing that's missing is a helicopter pad I mean, it might have one Who knows? It's a nice little entertainment center right there. You can belly up to your bar, hang out at the wine cellar, and have your pool. Wow. That could be a helicopter set, Pat. There you go. Yeah. A lot of acreage there. Imagine just spending your evening there. Throw a couple logs in there and just have a glass of wine and chill out. How to decompress. Yeah, that is amazing. Gorgeous. There you go. Firethorn Way.
Willow Glen House of the Week
Willow Glen Listings https://www.onereal.com/vito-scarnecchia-1/listings/calrets/ML81953387/SAN%20JOSE%2C%20CA%2C%20US
Willa Glenn House of the Week. Again, it's not my listing. This is Cherry Valley Drive in Willow Glen and 1. 7. I think this is still for sale. This is going to go for a lot more than what it listed for because of the area. But if you take a look at it. This house, it is original everything. But understand that when you buy a house like this, the price that you pay, you're going to pay a premium because you're in Willow Glen, but also you'll be updating everything in this house. So just keep that in mind. I really don't like this layout. Look, there's a bath over here in the family room area and there's only one bathroom here, there's no en suite. I'd probably build out right here and then a bathroom back here. There you go. Willa Glenn's house of the week, a mere 1. 768 million. Okay. Market Snapshot and Predictions Market snapshot over the 10 counties. We're doing really well with going over everything. And I think this was a glitch here. This is definitely a glitch. I'm going to have to go back and check this out. I think last year the reporting was messed up. So just take that with a grain of salt last week or the year to date. We have 463 closes. weeks. It's not too bad. In the Bay area, the volume is 3. 5 billion and we have a supply of 10 days based on the number of closes that we have and active homes that we have for sale. We're ranging about 450 on average and I'm sorry, 400 houses on average. This number is going to go up, right? We're going to see a lot more. I'm getting a lot of people who want to get their houses up on the market, but they're thinking March, April, or May timeframe if not a little bit later, it's just. They weren't ready for it. Now they're scrambling to get their house ready. And I know a lot of contractors that are working 12-hour days right now. So we're going to see the supply jump up, but I don't think we'll see the supply. Like we saw in 2023, let alone 2021, which is where we had that massive fire sale, right? We had 1200 homes close every week. I don't think we're going to see that maybe it'll get up to 500, 600 a week. And we'll be lucky if we see 700 because there's just not enough supply coming. So that's the reason why prices continue to go up in the Bay area specifically. But if you can't afford it and you absolutely want to stay in California and you absolutely need to keep your pricing low, you have five houses to look at, like we talked about. And hopefully, when you buy it, you can refinance under 6%. And then maybe one day he'll be able to afford that 40 million house. I'd like to have something like that, but I just wouldn't pay 40 million. That's just my values though. Conclusion and Final Thoughts Anyway, I'm Vito with Abitano. It's Monday, February 12th. Unfortunately, the Niners didn't make it. KC did a wonderful job in overtime and it was a game, especially last quarter. In the last two quarters, the overtime quarter was really fun to watch. We'll see you out there.
Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Website: www.abitano.com Get your Equity and Investment report here RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia Free Homebuyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg?sub_confirmation=1
1. Post 1:
"Discover the latest insights on housing affordability in California! 🏠🌴 Check out our script on 5 California counties with median prices under $350,000. Don't miss the luxury home of the week and market snapshots. Click the link to learn more! #housingaffordability #realestate"
2. Post 2:
"📢 Calling all homebuyers in California! Want to know where to find affordable housing? Our script reveals 5 counties with median prices under $350,000. Get the inside scoop on the market trends, mortgage rates, and luxury homes of the week. Don't miss out! #affordablehomes #realestate"
3. Post 3:
"Attention California residents! 🌉 Looking for affordable homes in the Golden State? Our script dives into the 4th quarter of housing affordability, featuring 5 counties with median prices under $350,000. Explore the luxury home of the week and market snapshots. Check it out now! #californiarealestate #affordablehousing"
Speculation on Housing Interest Rates: https://share.descript.com/view/yX2f1haHxCW
5 California Counties under $350,000 https://share.descript.com/view/2ZsakYYabmS
Delinquencies are ticking up https://share.descript.com/view/WEkhR7F4wDN
Luxury Home of the Week https://share.descript.com/view/g4MHqbahVKD
Willow Glen House of the Week https://share.descript.com/view/9AzOBO4G0Mq
Real Estate Market Update 2024: California Property Insights & Predictions
In this video, we explore the real estate market in California in 2024, focusing particularly on housing affordability, future mortgage rate predictions, and a snapshot of the current housing market across 10 counties. We delve into the possible implications of expected rate drops and discuss the problem of low supply, especially in Santa Clara County and the larger Bay Area. We also highlight five counties where median housing prices are under $350,000, showcase luxury and affordable homes of the week, and discuss potential future trends. This video offers valuable insights for those currently in, or looking to enter, the housing market in California.
00:00 Introduction and Overview
00:25 Speculation on Housing Interest Rates
01:28 Housing Affordability Index
02:06 Affordable Counties in California
02:47 Delinquencies and Foreclosures
04:40 Luxury Home of the Week
05:24 Willow Glen House of the Week
06:12 Market Snapshot and Predictions
07:54 Conclusion and Final Thoughts
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