Welcome to today’s roundup of the latest news in the Real Estate market! In California, supporters have decided to withdraw a $20 billion affordable housing bond from the November ballot due to concerns about its chances of passing. Meanwhile, a tech-backed company’s ambitious plan to address the state’s housing crisis faced setbacks and was pulled from the ballot. We also bring you insights into the 2024 housing market outlook, expert opinions on the possibility of a housing market crash, and the challenges of housing affordability in California. Additionally, we highlight how home prices in San Jose have reached record levels, impacting both homeowners and prospective buyers. Dive deeper into these stories to stay informed about the current state of the housing market.
Supporters yank California’s largest-ever affordable housing bond- CalMatters
Supporters of a $20 billion affordable housing bond in the San Francisco Bay Area have decided to pull it from the November ballot due to concerns about its chances of passing. The decision was made by the board of the Bay Area Housing Finance Authority, who cited worries about public support, a pending lawsuit against the bond, and another ballot measure that could impact its success. The bond would have funded the construction and preservation of subsidized housing in the region, with homeowners paying back the debt through property taxes. While some expressed mixed feelings about the decision, supporters believed it was strategic to wait and see the outcome of the other ballot measure before proceeding. The delay puts on hold a legislative debate over labor protections for the bond funds and adds pressure to meet the state’s housing goals without additional funding. Read more about this development on CalMatters.
This Tech-Backed Company Tried to Disrupt California’s Housing Crisis. It Couldn’t
Jan Sramek, a former investor and startup founder, proposed the “East Solano Plan” to address California’s housing shortage. The plan aimed to construct a dense, walkable city in eastern Solano County, complete with schools, parks, homes, and offices connected by bike lanes and buses. However, after 11 months and $9 million spent, Sramek’s development company, California Forever, pulled its measure from the November ballot. The project faced challenges due to an unclear campaign strategy, lack of cohesive leadership, and difficulties in gaining neighbors’ approval. Despite the setback, Sramek remains committed to bringing his grand vision to fruition.
2024 Housing Market Outlook: Trends and Predictions
Discover the latest trends and predictions for the housing market in 2024. Despite high mortgage rates and limited housing supply, there are signs that conditions may improve throughout the year. Learn about the impact of inflation, mortgage rates, and housing inventory on the market. Find out how you can prepare for homeownership, including improving your credit score and exploring down payment assistance programs. While timing the market perfectly is challenging, understanding the current dynamics can help you make informed decisions. Explore the full article to gain valuable insights into the 2024 housing market.
Is The Housing Market Going To Crash?
Discover what experts have to say about the potential for a housing market crash. Despite rising mortgage rates, home prices continue to climb due to a lack of housing supply and strong demand. While some markets may see small declines in prices, economists agree that a significant crash is unlikely. Homeowners’ strong personal balance sheets and cautious construction by builders contribute to the stability of the market. Explore the full article to gain insights into the current state of the housing market and why a crash is not expected.
Higher home prices and elevated mortgage rates push California housing affordability to near-17-year low in second-quarter 2024, C.A.R. reports
According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), California’s housing affordability reached its lowest levels in nearly 17 years during the second quarter of 2024. Higher home prices combined with elevated mortgage rates have contributed to this decline. Only 14% of homebuyers in the state could afford to purchase a median-priced, existing single-family home in the second quarter, down from 17% in the previous quarter. The report also highlights that the minimum annual income required to qualify for a home purchase in California has reached a record high. Despite these challenges, it is expected that housing affordability may improve in the next quarter as mortgage rates are predicted to decrease. Explore the full article to gain more insights into the current state of housing affordability in California.
California City Breaks Housing Market Record – Newsweek
Home prices in San Jose, California, have soared to record levels in the second quarter of 2024, according to the National Association of Realtors®, part of a trend that saw most metro areas of the U.S. record gains even as a rise in mortgage rates have made home loans more expensive. The median price for a previously-owned single-family home in San Jose rose to a little more than $2 million, NAR revealed in a report published Tuesday. “It’s the first time since NAR began tracking metro area single-family home prices in 1979 that a metro area’s median price exceeded $2 million,” the organization said in a statement. NAR pointed out in the report that about 90 percent of metro areas in the U.S. have seen prices go up as mortgage rates have ticked up to above 7 percent.
“The record-high home prices in most metro markets bring good and bad news,” NAR chief economist Lawrence Yun said in a statement. “It’s terrific news for homeowners who are moving ahead in wealth gains. However, it’s difficult for those wanting to buy a home as the required income to qualify has roughly doubled from just a few years ago.”
Elevated mortgage rates have made it tough for prospective homeowners, NAR suggested, but with recent trends suggesting rates could be declining, things could change for buyers. “Housing affordability will improve in upcoming months,” Yun said in the statement. “Mortgage rates have fallen measurably, and more supply is reaching the market. Therefore, the income required to buy a home will decrease.”