Why Realtors Think It’s More Affordable To Buy In California
With the economy roaring ahead, millions of Americans are beginning to wonder about buying their first home, yet few of them understand which states in the Union offer the most competitive and affordable homes. When plotting out where you may purchase property, it's worthwhile to solicit the opinion of professional realtors who deal with housing on a daily basis.
More and more, realtors think it's more affordable to buy in California right now than it will be for some time. Between exacerbating climate crises and changing market conditions, realtors think now is the time to scoop up property across California.
Rates are good right now
One of the primary reasons that realtors believe now is the time to purchase property in the Golden State is that mortgage interest rates are quite good right now and likely won't be getting better anytime soon. Lower seasonal home prices, too, have enabled more citizens to scout out properties which were once out of their price range.
According to CAR's Traditional Housing Affordability Index, homebuyers are better suited to pick up property right now than they've been in perhaps longer than a decade. 32 percent of all homeowners can afford a median-priced, existing single-family home in the first quarter of 2019, which is up from a mere 28 percent during the last quarter. The current 32 percent rate is also superior to the same rate during this quarter last year, which hovered at 31 percent.
The index is widely praised as being an authoritative source for home-buyers across the state, so families planning their first purchase may want to consider diving into its details. The index hasn't risen above 30 percent in a year since the first quarter of 2012, when it soared upwards to 56 percent.
Townhouses and condominiums are ripe for purchase
It's not just existing, single-family homes that are more affordable in California right now, either, but also condominiums and townhomes. At least 41 percent of California's households earning the minimum income can afford to purchase a $450,000 median-priced townhome, per the index. Only about 37 percent of households could afford such a purchase last quarter.
Los Angeles mortgage brokers like Truvaya are taking advantage of the ripe market conditions, reaching out to more prospective homeowners in an effort to get them to purchase property. Given exacerbating climate conditions are about to make insurance rates much worse in the future, California property owners who buy and insure property now may fare better than those who wait.
That's because California's infamous wildfires have been plaguing insurance companies and forcing them to grapple with increased rates, which inevitably pass onto homeowners. Given that exacerbating climate conditions will likely render these harsh flames even worse in the near-future, insurance premiums are likely as cheap as they're going to get for the average homeowner right now.
The increased affordability is spread out
Between the index informing homeowners than now is one of the best market opportunities that has surfaced in years and worsening climate change that's forcing statewide officials to re-approach the issue of housing in its entirety, many realtors think now is the natural time to buy. Those who delay in scooping up Golden State property would inevitably be forced to deal with more worrisome insurance arrangements and a future housing index which may not be as favorable to first-time buyers.
The San Francisco Bay Area is the largest area of growth when it comes to rising affordability. According to a report from NBC Los Angeles, affordability has leapt upwards from a year ago in every county in the San Francisco Bay Area. Affordability continued to leap upwards in the Central Coast region, though the Central Valley and Southern California regions saw mixed results in affordability improvements.