Welcome to today’s roundup of news in the housing market! In a recent ruling, the U.S. Supreme Court has set the stage for potential changes in housing developments in California. The ruling emphasizes the need for cities and counties to carefully assess impact fees on development projects, aiming for fairness and proportionality. This decision could have a significant impact on addressing the housing crisis in the state. Additionally, we’ll explore the latest trends in median home prices across California, with some counties experiencing notable increases. Despite rising prices, the housing market faced a slight slowdown in March, highlighting the challenges faced by homebuyers. We’ll also delve into the various first-time home buyer programs and grants offered by the California Housing Finance Agency (CalHFA), providing valuable assistance to those navigating the high-priced real estate market. Let’s dive in and discover more about these exciting developments!
Supreme Court ruling could pave way for more housing developments in California – CBS San Francisco
A recent U.S. Supreme Court ruling may have a significant impact on housing developments in California. The ruling states that cities and counties must be more careful in assessing impact fees on development projects, ensuring that they are connected to and proportionate to the actual impact of the development. This ruling could be a game-changer in addressing the housing crisis in the state.
Developers have long argued that high impact fees have hindered new home construction, leading them to build in other states. The ruling now gives builders the power to challenge the validity of generalized impact fees in court. While it may be a hit to the budgets of cities and counties, reducing these fees could encourage builders to return to California and construct the much-needed housing units.
The Supreme Court ruling may expedite the process of adjusting impact fee schedules, as cities and counties may face lawsuits from developers. However, voluntarily reducing fees could save them from legal costs. This ruling brings attention to the need for a more specific and careful examination of impact fees, ensuring that they are fair and reasonable.
$247K for a house in California? $2.1M? See latest list of cheapest and priciest counties
The median sold price of an existing single-family home in California has been trending up, reaching an average of $854,490 in March, a 6% increase from February. Overall, the statewide median home price has risen nearly 8% since March 2023. However, despite the increasing prices, the housing market in the state lost momentum in March, with sales falling on a year-over-year basis for the first time in three months.
The high mortgage rates have been a hindrance to home sales, with rates reaching the highest levels since mid-November 2023. The average interest rate for a 30-year fixed mortgage in California is currently at 7.05%. The California Association of Realtors ranked the counties based on their March median home sales prices, with Lassen County having the lowest median sold price at $247,000, and San Mateo County having the highest at $2,170,000.
While some counties had home prices below the state median, others surpassed it significantly. The Bay Area remained the most expensive region, with prices exceeding $2 million for a single-family home. For a full list of counties and their median home prices, visit the Realtors’ association website.
California First-Time Home Buyer | 2024 Program & Grants
Buying your first home in California can be a challenge, especially considering the high prices in the state. However, there are various first-time home buyer loans and grants available to provide assistance. The California Housing Finance Agency (CalHFA) offers a range of loan programs with special interest rates for first-time home buyers. To qualify for these programs, you’ll need to meet certain requirements and complete a homebuyer education course.
Some of the loan programs offered by CalHFA include the CalHFA FHA loan, CalPLUS FHA program, CalHFA VA program, CalHFA USDA program, CalHFA conventional program, and more. These programs offer different features such as fixed interest rates, down payment assistance, and closing cost assistance.
In addition to loan programs, there are also down payment assistance programs available in California. The CalHFA MyHome Assistance Program provides financial help toward down payment and closing costs. There are also other statewide programs and grants, such as the CalHFA ADU Grant Program, Pathway to Homeownership Closing Cost Assistance grant program, and Forgivable Equity Builder Loan.
California’s big cities, like Los Angeles, San Diego, and San Jose, have their own programs to assist first-time home buyers. These programs offer down payment assistance, deferred payment loans, and other forms of financial support.
If you’re a first-time home buyer in California, there are numerous resources and programs available to help you navigate the process. It’s important to research and explore your options to find the best match for your needs and financial situation.