Real Estate Roundup: More California Home Sellers Cutting Prices This Year
February 4, 2019 | Source: Pacific Union Bay Area Real Estate Blog
Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious.
SAN JOSE LED THE NATION FOR ANNUAL INVENTORY GAIN IN JANUARY
Golden State homebuyers enjoyed additional leverage in January, with extra inventory to choose from, falling prices, and more sellers reducing their expectations.
Research from realtor.com says that that the number of homes for sale in the San Jose metropolitan area was up by 128 percent from January 2017, the largest such gain of any of the 50 tracked housing markets. Though the median list price for a home in San Jose dipped by 9 percent year over year — the biggest decrease in the country — the region is still America’s most expensive, at $999,494.
Similar trends played out in San Francisco and Los Angeles, where inventory rose by a respective 58 percent and 36 percent from one year earlier. Both cities posted 1 percent annual depreciation, with list prices ending January at $837,525 in San Francisco and $699,950 in Los Angeles.
All three of those California cities saw an uptick in price cuts from January 2018: San Jose (9 percent), Los Angeles (5 percent), and San Francisco (4 percent). As further evidence of rebalancing market conditions between buyers and sellers, homes in San Jose lasted on the market for a median 27 days longer than they did at the beginning of last year, with the pace of sales also increasing in San Francisco and Los Angeles.
HOW MUCH SHOULD GENERATION Z SAVE EACH MONTH TO BUY A HOME IN CALIFORNIA?
Most members of Generation Z aspire to own a home before they turn 30, but to accomplish that ambitious goal, they will need to put themselves on an ambitious savings plan — particularly here in California.
Another recent realtor.com report calculates how much money an 18-year-old American would need to save by 2031 to afford the projected median-priced home in major metro areas, assuming a 10 percent down payment and closing costs. Nationwide, young adults who begin saving now would need to put aside $304 per month to afford to purchase the median-priced $386,310 home 12 years down the road.
Predictably, California cities will require Generation Z to save much more than the national average to own a home. By 2031, the median home price in San Jose is expected to climb to $2,496,370, requiring a monthly savings of $1,962, the most in the country. San Francisco and Los Angeles followed, with young Americans needing to save a respective $1,439 and $979 each month to afford a home by age 30.
LOS ANGELES, SAN FRANCISCO RANK AMONG AMERICA’S BEST PLACES TO GET MARRIED
While Southern California’s pleasant year-round climate makes it a great place to throw a party, it’s not the only reason that engaged couples might consider tying the knot there.
WalletHub ranks more than 180 U.S. cities for nuptial-friendliness on a 100-point scale, using 27 metrics that fall under the broader measures of facilities and services, activities and attractions, and costs. By those criteria, Los Angeles is America’s third best place to get hitched, scoring a 68.74. The city ranks No. 1 in the country for activities and attractions and ties for the most bridal and flower shops per capita.
San Francisco comes in at No. 6, notching a 63.29 and earning the top spot in the facilities and services category. Like Los Angeles, San Francisco has among the most attractions, bridal stores, and florists in the nation.
But like most things in California, getting married here doesn’t come cheap, with San Francisco ranking No. 166 for costs and Los Angeles at No. 139.
CALIFORNIA RENTERS PAYING MORE THAN THEY WERE LAST FEBRUARY
Anyone who is searching for an apartment in a major California job center will likely pay more for it than they would have at the same time last year.
Zumper’s latest monthly rent report puts six of America’s 10 most expensive rental markets in the Golden State as of February. At the top, of course, is San Francisco, where the median rent for a one-bedroom unit currently stands at $3,580, up by 5.3 percent year over year. In No. 3 San Jose, rents increased by 2.8 percent to $2,530 while rising by 12.9 percent to $2,370 in No. 6 Oakland.
Southern California saw the same rental-cost trends, with prices increasing by 8.1 percent to $2,400 in No. 5 Los Angeles. Rents rose in No. 9 San Diego and No. 10 Santa Ana by a respective 11.7 percent and 7.9 percent, though the average tenant in those two markets still pays less than $2,000 per month.