OCTOBER 2019
US home values are highest where the weather is best
Coastal California cannot be beat when it comes to high home prices and nice weather. The moderating effect of the Pacific Ocean on temperatures helps give the lucky residents of coastal metros more pleasant days per year than any other part of the country.
Northern California, the most pleasant region after SoCal, has a median home value ranging around $1 million in the Bay Area metros of SF, SJ and Santa Cruz. Sunbelt destinations in FL and So Carolina present attractive options where more than half the days each year are pleasant and home values are at or below the national median of $229,000.
Gov. Newsom Signs Bill that Addresses Housing Crisis
Gov. Newsom recently signed SB 330 which creates certainty for developers constructing new housing units, by permitting no more than five public hearings to approve a proposed housing development if the development is consistent with local planning, zoning and design requirements. Additionally, upon granting housing development approval, local governments will be prohibited from increasing local permit fees throughout the projects development, which will create more certainty in the entitlement process. It also streamlines the local permitting process for 5 years in cities whose populations exceed 5,000 residents and where rents exceed 130% of the national average.
The Governor also signed SB 1482, which caps rents throughout the state. The law limits annual rent increases that landlords can enact on tenants in the state to 5% after inflation. The new limit takes effect in January 2020. Lawmakers said the rent cap was driven by skyrocketing affordability. 55% of renters in California paid 30% or more of their income for housing in 2017 compared to 40.5% of renters nationally. Only CA, MD, NJ, NY and the District of Columbia have some form of rent control protections.
New Appraisal Exemption Rule takes Effect
Certain home sales of $400,000 and below will no longer require an appraisal, under a new rule. Homes that qualify for the appraisal exemption can receive an evaluation instead.
The new exemption does not apply to loans sold or guaranteed by the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, or Freddie Mac all will still require an appraisal.
The previous rule stated that appraisals were not required on home sales of $250,000 and below. The Federal Deposit Insurance Corp, the Office of the comptroller of the Currency, and the Board of Governors of the Federal Reserve approved the new threshold over the last two months.
The National Association of Realtors has advocated that any loan limit related to an appraisal exemption be tied to specific markets rather than a blanket number for the whole country. A $100,000 limit might be reasonable in some parts of the country and a $500,000 limit might be reasonable in others, depending on average housing values, NAR says.
Is It a Good time to buy?
In the third quarter of 2019, 63% of people believe that now is a good time to buy a home, which is down slightly from the previous quarter. Thirty-four percent believe that strongly, and 29% believe that moderately. Only 37% of people believe that now is not a good time to buy a home. Seventy-four percent of people believe that now is a good time to sell a home, which is a slight increase over last quarter at 73%. Those that feel that strongly decreased slightly from 46% in Q2 to 45% in Q3 2019. Twenty-six percent believe that now is not a good time to sell a home. And 48 percent of renters compared to 73% of owners think now is a good time to buy.
Third Quarter Statistic Comparison
