FEBRUARY 2019
California Governor Focuses Budget on Housing
Governor Gavin Newsom revealed his proposed budget last week. In total, the Budget includes $7.7 billion across multiple departments and programs to address housing and homelessness throughout the state.
While the Governor's budget makes it clear that housing is on the forefront of his legislative agenda, it was not clear how many new units the Governor's proposal would generate. Governor Newsom has proposed to build 3.5 million new units over the next 7 years. The proposed budget will be before the legislature for the next few months and is expected to be finalized before the next fiscal year.
Housing outlook for 2019: Is it too late to buy?
2013 was the comeback year. After six long years of sluggish sales, plummeting prices, failed tax incentives and a flood of foreclosures, the housing market at long last had rebounded.
2014 was a hangover year. But by 2015, the housing market was back for good, the Great Recession a distant, bitter memory. Bidding wars abounded. Buyers competed with investors paying cash. Purchase offers started piling up days after a home hit the market.
2018 was a transition year. It started out strong, but by year's end, sales petered out and price appreciation had downshifted. Now it's 2019's turn.
Will a 6 1/2-year streak of year-over-year price gains continue? Or will home prices go down? Will it be a buyer's market? Or will sellers continue to have the upper hand? And will there be another recession? In short, did renters miss their chance to buy a home?
The verdict, say market watchers and numerous local forecasts, is 2019 won't be a memorable year for housing. Signs point to a sluggish year. Real estate agents report some of their clients have decided to wait it out. Home prices are due to go back down, those buyers say. Some economists agree. But most forecasts say homes prices will rise in 2019, but those gains will be smaller than in years past.
The True Cost of Buying a Home
Interest rates
Loan fees from lender
Homeowners insurance
Utilities, repairs, etc.
Mobility & flexibility
Creative ways to Affordability:
Down payment assistance programs
Seller Financing
Shared Equity
Help from Family
Lease with Option to Buy
Short Term 2nd Mortgage
Expenses to expect:
New appliances
Roof repairs
Updating kitchen and baths
Flooring
Landscaping
Paint or stucco
Potential additions
Permits
All markets are local, and in determining where the market is one needs to, in some cases, go block by block or neighborhood by neighborhood.
National statistics surely do not relate to California, the Bay Area or even individual cities. I would encourage anyone to get advice from their favorite or local Realtor. I recommend, you do not rely on Zillow or public portals or websites.
I am constantly reviewing the market on a weekly and sometimes daily basis. This is the only way to be current and up to date. People will always be buying and selling regardless of the economy or interest rates. Stay tuned!
If you have a real estate question that you would like answered, please don't hesitate to contact me. Or maybe you know some people I can help. Let me know!