Welcome to today’s roundup of news in the Real Estate category. In California, first-time home buyers face the challenge of high prices, but there are various loan programs and grants available through the California Housing Finance Agency (CalHFA) to provide assistance. Meanwhile, the US housing market experienced a significant slowdown in new home construction, which could impact housing prices and inventory. Additionally, the Supreme Court ruling allows developers in California to challenge impact fees imposed by local governments for public improvements. Lastly, California’s housing market slump raises concerns about affordability as rising costs and limited supply pose challenges for developers. Explore the articles below to delve deeper into these topics:
California First-Time Home Buyer | 2024 Program & Grants
Buying your first home can be a real challenge, especially in a state like California where prices are often sky-high. Luckily, the Golden State has a variety of first-time home buyer loans and grants to help those who need an extra hand. Here’s how to get started.
For California home buyers, a good place to start looking for assistance is the California Housing Finance Agency (CalHFA). This agency offers a wide range of first-time home buyer loan programs at its own special interest rates. To qualify for any of CalHFA’s special mortgage loans, you’ll need to:
- Take an eight-hour online home buyer education course
- Participate in one-on-one counseling sessions
The CalHFA FHA loan program is guaranteed by the Federal Housing Administration and features a 30-year mortgage with a fixed interest rate. The CalPLUS FHA program is another government-backed mortgage that comes with a slightly higher interest rate than its standard FHA loan, but it includes a closing cost assistance program called the CalHFA Zero Interest Program (ZIP). The CalHFA VA program is available for eligible veterans and active-duty service members, offering a VA-insured mortgage with a 30-year loan term and fixed-interest rate. The CalHFA USDA program is backed by the USDA and provides a 30-year, fixed-rate loan with down payment assistance called the “MyHome Assistance Program.” Lastly, the CalHFA conventional program offers a 30-year mortgage with a fixed interest rate.
California also has numerous down payment assistance programs (DPAs) that can provide financial help toward your down payment and closing costs. Some of these programs are local and serve specific counties or cities. The main statewide programs include the CalHFA MyHome Assistance Program, which offers up to 3.5% assistance, and the Forgivable Equity Builder Loan, which forgives up to 10% of the purchase price after five years.
Remember, California offers plenty of assistance in the form of home buyer education, special mortgages, and down payment assistance. If you’re a first-time buyer, you could be eligible for real help. To learn more about California first-time home buyer programs and grants, click here.
New Residential Construction Press Release
Stay updated with the latest information on new residential construction in the United States. For data inquiries, you can contact the Economic Indicators Division, Residential Construction Branch at 301-763-5160 or email eid.rcb.customer.service@census.gov. For media inquiries, reach out to the Public Information Office at 301-763-3030 or pio@census.gov. Sign up for email updates to receive the most recent news and updates.
To learn more about new residential construction and access the press release, click here.
Builders may fight ‘impact fees’ that fund municipal projects in California, Supreme Court rules
The Supreme Court ruled that developers and home builders in California have the right to challenge the fees commonly imposed by cities and counties to pay for public improvements such as roads, schools, and sewers. These “impact fees” may be deemed unconstitutional if they impose an unfair burden on builders and developers. The decision could have a significant impact on the construction of more affordable housing in California, as high fees have been a barrier to development. Local governments in California have increasingly relied on impact fees to finance new projects, but the court did not specify when such fees become unfair and unconstitutional.
This ruling opens the door for homeowners and developers to sue and challenge these fees as an unconstitutional taking of their private property. The case will now go back to the California courts. The Pacific Legal Foundation hailed the ruling as a victory for property rights, emphasizing that holding building permits hostage in exchange for excessive development fees is seen as extortion.
To learn more about this ruling and its implications, click here.
US home construction tumbles 14.7% to 7-month low – Orange County Register
New home construction in the US experienced a significant slowdown last month, with residential starts decreasing by 14.7% to a 1.32 million annualized rate, the lowest since August. This decline in construction can be attributed to a leveling off in interest rates, which has resulted in a lull in housing demand and caution among builders. The figures indicate a blemish in the nation’s housing market recovery, as both single-family and multifamily home construction saw drops, and building permits also fell.
Builders may be taking a breather after ramping up construction in recent months, as the inventory of new homes for sale is near its highest level since 2008. The sentiment among buyers and sellers is slowly adjusting to the new normal of mortgage rates stabilizing around 7%. However, hesitation remains among buyers, leading to caution from builders and a focus on current projects rather than breaking ground on new homes.
To learn more about the decline in US home construction, click here.
California’s housing slump spells trouble as the state is set to get even more pricey
A slowdown in home construction in California is causing concern in the real estate market. With fewer homes being built, experts warn that the already high housing prices could skyrocket further due to limited supply, worsening the state’s affordability crisis. Rising labor and material costs, along with stringent local regulations, are making it increasingly challenging for developers to turn a profit on new projects. The stagnant and soaring cost of borrowing is also impacting developers, as interest rates rise and financing becomes more expensive. Building permits for new homes have seen a decline, both for single-family homes and multifamily units, indicating a worrying trend for the housing market. Developers in Los Angeles face additional challenges, such as property transfer taxes aimed at funding affordable housing. Despite recent efforts to streamline the housing approval process, developers remain cautious about rising costs and uncertain market conditions.
To learn more about California’s housing slump and its implications, click here.