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September
20

September 20th, 2022 by

Agronometrics in Charts: California growers capitalizing on the void left behind by the ban on Mexican avocados

March 03 , 2022

Agronometrics in Charts: California growers capitalizing on the void left behind by the ban on Mexican avocados

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September
20

September 20th, 2022 by

September 16, 2022   


August home sales and price notch higher amid temporary rate reprieve, C.A.R. reports

  • Existing, single-family home sales totaled 313,540 in August on a seasonally adjusted annualized rate, up 6.1 percent from July and down 24.4 percent from August 2021.

  • August's statewide median home price was, $839,460 up 0.7 percent from July and up 1.4 percent from August 2021.

  • Year-to-date statewide home sales were down 14.9 percent in August.

LOS ANGELES (Sept. 16) – A brief retreat in mortgage rates that created a slightly more favorable lending environment provided a window of opportunity for California homebuyers and perked up home sales in August for the first time in five months, theCALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2022-08-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 313,540 in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. August's sales pace was up 6.1 percent on a monthly basis from 295,460 in July and down 24.4 percent from a year ago, when 414,860 homes were sold on an annualized basis. August's monthly sales increase was higher than the long-run average of 0.4 percent for a July-August period in the past 43 years and marked the first monthly sales increase in five months.

"California's housing market stabilized briefly as a temporary reprieve on mortgage rates in July and early August brought buyers into the market," said C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. "Active listings have passed their annual peak, and while homes are taking slightly longer to sell, the share of homes seeing price reductions has also stabilized to near pre-pandemic levels. In fact, price growth in August actually picked up on both a monthly and annual basis, and pending sales suggest a bounce-back for homes priced $2 million and above."

California home prices stabilized in August as the statewide median price increased on both a monthly basis and yearly basis, but at a less-than-2-percent growth pace. The statewide median price edged up 0.7 percent in August to $839,460 from the $833,910 recorded in July and was up 1.4 percent from the $827,940 recorded last August. The year-over-year price gain was the smallest in more than two years. The nominal price increase was attributed partly to a change in the mix of sales in August. With sales in the million-dollar price segment rising 6.8 percent from the prior month, the August statewide median price also pushed up slightly by 0.7 percent from July.

"It's encouraging to see that August's sales pace rebounded above an annualized 300,000 units sold," said C.A.R. Vice President and Chief Economist Jordan Levine. "Although we do not expect a rapid bounce-back because the Fed is expected to continue raising interest rates to get inflation under control, the monthly increase in closed and pending sales suggests that the market may have already priced in most of the rate increases to date. Still, buyers will continue to grapple with rising costs of borrowing, which will keep home sales below the 350,000 annualized pace for the remainder of the year."

Consumer optimism bounced back as interest rates declined in early August, according to C.A.R.'s monthly Consumer Housing Sentiment Index. Conducted in early September, the share of respondents who believed it was a good time to buy a home rose month-over-month for the third straight month to 19 percent, pushing the Housing Sentiment Index to 59, but was significantly lower than the Index of 72 in August 2021. Meanwhile, those who believed it was a good time to sell a home continued to decline to 56 percent, dropping sharply from 72 percent in August 2021. With interest rates moving upward since mid-August, housing sentiment will likely reverse direction next month. In fact, two-thirds (64%) of consumers believed that the overall economic conditions in California would not improve in the next 12 months, and three-quarters (75%) believed that interest rates would rise in the next 12 months.

 

Other key points from C.A.R.'s August 2022 resale housing report include:

  • At the regional level, sales continued to fall sharply from last year, but the declines in August moderated slightly from the prior month. Three of the five major regions continued to drop by more than 25 percent from last year, with the Central Coast region dipping the most at 30.6 percent year-over-year. The San Francisco Bay Area (-29.1 percent) and Southern California (-28.8 percent) also dipped more than 25 percent from last year, but the declines were less severe compared to the drops recorded in July. The Central Valley (-22.1 percent) and the Far North (-10.5 percent) had the smallest sales declines of the five major regions, but both continued to fall year-over-year by double-digits.

     

  • All but four counties tracked by C.A.R. posted sales drops from last August 2022. Of the 47 counties that experienced a year-over-year sales decline, 30 counties suffered a plunge of more than 20 percent. San Benito County recorded the biggest sales drop from last August at -68.2 percent, followed by Sonoma (-40.3 percent), and Monterey (-35.8 percent). Counties that experienced a sales decline decreased an average of -23.4 percent in August. Four counties recorded a sales increase from a year ago, with Plumas gaining the most at 43.3 percent. Siskiyou (11.9 percent), Del Norte (9.1 percent) and Nevada (2.2 percent) were the other three counties that recorded an annual sales increase. For the first eight months of 2022, sales in San Benito had the sharpest decline at -31.2 percent, while Yuba (8.4 percent) continued to post the best sales performance of all counties compared to last year.

     

  • For the first eight months of 2022, sales in San Luis Obispo continued to drop the sharpest at -28.9 percent, while Yuba (17.7 percent) continued to post the best sales performance of all counties compared to last year.

     

  • More than two-thirds of all California counties experienced a year-over-year increase in their median prices, but their growth rates have been decelerating in the past three months.Seven counties continued to record double-digit growth rates in their median prices from a year ago but was fewer than the 31 counties recorded in May. Napa (29.2 percent) had the biggest price gain of all counties, followed by Sutter (14.8 percent) and Kern (14.5 percent).Fifteen counties registered a dipped in their median prices from a year ago, with Tehama dropping the most at -13.8 percent, followed by San Francisco (-11.6 percent) and El Dorado (-7.3 percent).

     

  • Housing supply in California improved from a year ago but tightened slightly from the prior month as housing demand rose in August. The statewide Unsold Inventory Index (UII) increased to 2.9 months in August 2022 from 1.9 months a year ago. Weaker housing demand, however, continued to be the primary factor for the improvement in the index. With both closed sales and pending sales slowing by more than 20 percent, active listings have been staying on the market longer, resulting in a year-over-year surge of 57.1 percent in homes for sale in August.

     

  • Forty-seven of the 51 counties tracked by C.A.R. recorded an increase in active listings on a year-over-year basis in August, a slight increase from July's 46 counties. Three counties had triple-digit year-over-year gains in homes for sale, with Yuba leading the pack again with a surge of 162.4 percent from a year ago, followed by Placer (105.6 percent) and Mendocino (100.0 percent). Despite an overall improvement in housing supply conditions, four counties experienced a dip in active listings from last year. Active listings in Del Norte dropped the most at -56.0 percent, followed by Plumas (-5.9 percent), Sonoma (-2.9 percent), and Lassen (-1.0 percent).

 

  • The median number of days it took to sell a California single-family home was 19 days in August and 9 days in August 2021.
  • C.A.R.'s statewide sales-price-to-list-price ratio* was 98.4 percent in August 2022 and was below 100 percent for the first time since June 2020. The statewide sales-price-to-list-price ratio was 102.8 percent in August 2021.

  • The statewide average price per square foot** for an existing single-family home was $406, up from $395 in August a year ago.

  • The 30-year, fixed-mortgage interest rate averaged 5.22 percent in August, up from 2.84 percent in August 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.36 percent, compared to 2.42 percent in August 2021.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS®(www.car.org) is one of the largest state trade organizations in the United States with more than 217,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

 

August 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

 

August 2022

Median Sold Price of Existing Single-Family Homes

Sales

State/Region/County

Aug.

2022

July

2022

 

Aug.

2021

 

Price MTM% Chg

Price YTY% Chg

Sales MTM% Chg

Sales YTY% Chg

Calif. Single-family home

$839,460

$833,910

 

$827,940

 

0.7%

1.4%

6.1%

-24.4%

Calif. Condo/Townhome

$625,000

$645,000

 

$600,000

 

-3.1%

4.2%

9.6%

-28.6%

Los Angeles Metro Area

$765,000

$780,000

 

$731,000

 

-1.9%

4.7%

5.7%

-29.1%

Central Coast

$950,000

$950,000

 

$905,000

 

0.0%

5.0%

15.9%

-30.6%

Central Valley

$460,000

$480,000

 

$450,000

 

-4.2%

2.2%

9.9%

-22.1%

Far North

$380,000

$405,000

 

$387,000

 

-6.2%

-1.8%

-1.3%

-10.5%

Inland Empire

$565,500

$575,000

 

$520,000

 

-1.7%

8.7%

7.2%

-29.4%

San Francisco Bay Area

$1,250,000

$1,300,000

 

$1,265,000

 

-3.8%

-1.2%

9.9%

-29.1%

Southern California

$795,000

$808,000

 

$760,000

 

-1.6%

4.6%

7.8%

-28.8%

 

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

 

Alameda

$1,230,000

$1,340,000

 

$1,300,000

 

-8.2%

-5.4%

10.4%

-29.9%

Contra Costa

$870,000

$902,500

 

$889,500

 

-3.6%

-2.2%

4.7%

-27.4%

Marin

$1,626,000

$1,720,000

 

$1,560,000

 

-5.5%

4.2%

30.5%

-6.2%

Napa

$1,162,500

$1,107,500

 

$900,000

 

5.0%

29.2%

32.4%

-23.1%

San Francisco

$1,635,000

$1,700,000

 

$1,850,000

 

-3.8%

-11.6%

3.4%

-23.9%

San Mateo

$1,950,000

$1,965,000

 

$1,925,000

 

-0.8%

1.3%

-0.7%

-30.3%

Santa Clara

$1,650,000

$1,740,000

 

$1,655,000

 

-5.2%

-0.3%

22.7%

-28.4%

Solano

$610,000

$598,000

 

$590,000

 

2.0%

3.4%

7.1%

-32.1%

Sonoma

$840,000

$817,500

 

$770,000

 

2.8%

9.1%

-1.5%

-40.3%

Southern California

 

 

 

 

 

 

 

 

 

Los Angeles

$854,960

$846,320

 

$830,070

 

1.0%

3.0%

1.2%

-29.1%

Orange

$1,200,000

$1,231,000

 

$1,100,000

 

-2.5%

9.1%

10.1%

-30.2%

Riverside

$620,000

$625,000

 

$570,000

 

-0.8%

8.8%

5.5%

-27.4%

San Bernardino

$472,750

$490,000

 

$435,000

 

-3.5%

8.7%

10.3%

-32.6%

San Diego

$885,000

$930,000

 

$835,000

 

-4.8%

6.0%

16.3%

-27.7%

Ventura

$884,000

$920,000

 

$853,000

 

-3.9%

3.6%

13.3%

-24.0%

Central Coast

 

 

 

 

 

 

 

 

 

Monterey

$842,500

$924,000

 

$827,500

 

-8.8%

1.8%

2.9%

-35.8%

San Luis Obispo

$868,500

$895,500

 

$770,000

 

-3.0%

12.8%

7.3%

-29.1%

Santa Barbara

$1,112,500

$902,500

 

$1,111,960

 

23.3%

0.0%

39.2%

-24.5%

Santa Cruz

$1,300,000

$1,250,000

 

$1,255,000

 

4.0%

3.6%

21.4%

-34.0%

Central Valley

 

 

 

 

 

 

 

 

 

Fresno

$405,000

$407,000

 

$375,000

 

-0.5%

8.0%

9.2%

-20.7%

Glenn

$327,500

$360,000

 

$302,500

 

-9.0%

8.3%

0.0%

-7.1%

Kern

$373,250

$362,900

 

$326,000

 

2.9%

14.5%

18.7%

-12.8%

Kings

$321,750

$350,000

 

$310,000

 

-8.1%

3.8%

8.4%

-12.6%

Madera

$400,000

$433,000

 

$377,500

 

-7.6%

6.0%

-6.8%

-4.9%

Merced

$385,000

$410,000

 

$369,250

 

-6.1%

4.3%

-4.3%

-30.2%

Placer

$650,000

$712,450

 

$643,750

 

-8.8%

1.0%

9.5%

-28.3%

Sacramento

$535,000

$550,000

 

$515,000

 

-2.7%

3.9%

6.6%

-26.4%

San Benito

$755,000

$825,000

 

$774,510

 

-8.5%

-2.5%

-46.2%

-68.2%

San Joaquin

$530,000

$510,000

 

$514,480

 

3.9%

3.0%

30.5%

-17.5%

Stanislaus

$460,000

$469,000

 

$435,000

 

-1.9%

5.7%

17.7%

-28.6%

Tulare

$350,000

$370,000

 

$317,500

 

-5.4%

10.2%

-1.0%

-6.2%

Far North

 

 

 

 

 

 

 

 

 

Butte

$441,000

$450,000

 

$435,000

 

-2.0%

1.4%

-14.5%

-16.3%

Lassen

$199,000

$260,000

 

$204,500

 

-23.5%

-2.7%

-28.9%

-6.9%

Plumas

$380,000

$462,500

 

$397,500

 

-17.8%

-4.4%

-10.4%

43.3%

Shasta

$370,000

$389,000

 

$389,900

 

-4.9%

-5.1%

11.7%

-15.6%

Siskiyou

$360,000

$339,000

 

$327,500

 

6.2%

9.9%

4.4%

11.9%

Tehama

$301,000

$325,000

 

$349,000

 

-7.4%

-13.8%

3.4%

-18.9%

Other Calif. Counties

 

 

 

 

 

 

 

 

 

Amador

$447,450

$395,000

 

$425,000

 

13.3%

5.3%

33.3%

-6.7%

Calaveras

$464,950

$459,900

 

$485,000

 

1.1%

-4.1%

22.7%

-21.4%

Del Norte

$378,960

$376,000

 

$357,500

 

0.8%

6.0%

0.0%

9.1%

El Dorado

$631,000

$650,000

 

$680,890

 

-2.9%

-7.3%

13.8%

-23.2%

Humboldt

$465,000

$480,000

 

$408,500

 

-3.1%

13.8%

22.4%

-11.8%

Lake

$330,000

$356,000

 

$335,000

 

-7.3%

-1.5%

-15.3%

-34.4%

Mariposa

$450,000

$601,000

 

$475,000

 

-25.1%

-5.3%

46.2%

-9.5%

Mendocino

$502,500

$619,500

 

$533,000

 

-18.9%

-5.7%

33.3%

-13.3%

Mono

$797,500

$815,000

 

$819,500

 

-2.1%

-2.7%

7.7%

-30.0%

Nevada

$580,000

$595,000

 

$570,950

 

-2.5%

1.6%

7.6%

2.2%

Sutter

$459,000

$437,100

 

$400,000

 

5.0%

14.8%

23.7%

-15.1%

Tuolumne

$407,500

$435,000

 

$389,000

 

-6.3%

4.8%

-9.3%

-32.8%

Yolo

$639,000

$600,000

 

$595,000

 

6.5%

7.4%

29.7%

-10.9%

Yuba

$422,500

$440,000

 

$410,000

 

-4.0%

3.0%

-8.6%

-35.7%

r = revised

 

August 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

August 2022

Unsold Inventory Index

Median Time on Market

State/Region/County

Aug.

2022

July

2022

 

Aug.

2021

 

Aug.

2022

July

2022

 

Aug.

2021

 

Calif. Single-family home

2.9

3.2

 

1.9

 

19.0

14.0

 

9.0

 

Calif. Condo/Townhome

2.4

2.7

 

1.7

 

17.0

13.0

 

10.0

 

Los Angeles Metro Area

3.1

3.3

 

2.0

 

19.0

14.0

 

9.0

 

Central Coast

2.7

3.2

 

1.8

 

16.0

13.0

 

9.0

 

Central Valley

2.8

3.1

 

1.8

 

16.0

12.0

 

7.0

 

Far North

3.8

3.7

 

3.0

 

30.0

24.0

 

11.0

 

Inland Empire

3.4

3.6

 

2.2

 

21.0

15.0

 

10.0

 

San Francisco Bay Area

2.2

2.5

 

1.5

 

20.0

15.0

 

11.0

 

Southern California

3.0

3.3

 

1.9

 

18.0

13.0

 

9.0

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

 

 

Alameda

2.1

2.4

 

1.3

 

16.0

13.0

 

9.0

 

Contra Costa

2.3

2.5

 

1.4

 

18.0

13.0

 

8.0

 

Marin

1.8

2.1

 

1.6

 

26.0

16.0

 

14.0

 

Napa

3.4

4.3

 

2.7

 

36.0

34.5

 

33.0

 

San Francisco

2.2

2.2

 

1.7

 

18.0

15.0

 

13.0

 

San Mateo

2.3

2.2

 

1.5

 

14.0

12.0

 

9.0

 

Santa Clara

2.0

2.6

 

1.4

 

16.0

14.0

 

8.0

 

Solano

2.8

2.9

 

1.3

 

34.0

27.0

 

23.0

 

Sonoma

2.6

2.6

 

1.8

 

31.0

31.5

 

34.0

 

Southern California

 

 

 

 

 

 

 

 

 

 

Los Angeles

3.1

3.3

 

2.0

 

16.0

13.0

 

9.0

 

Orange

2.5

3.0

 

1.6

 

17.5

13.0

 

8.0

 

Riverside

3.2

3.4

 

2.0

 

22.0

17.0

 

10.0

 

San Bernardino

3.7

4.0

 

2.4

 

19.0

13.0

 

10.0

 

San Diego

2.5

3.1

 

1.7

 

15.0

10.0

 

8.0

 

Ventura

2.3

2.8

 

1.9

 

28.0

23.0

 

20.0

 

Central Coast

 

 

 

 

 

 

 

 

 

 

Monterey

3.1

3.2

 

2.1

 

20.0

14.0

 

9.0

 

San Luis Obispo

2.5

2.8

 

1.7

 

12.5

9.0

 

8.0

 

Santa Barbara

2.6

3.7

 

1.8

 

14.0

14.5

 

9.0

 

Santa Cruz

2.5

3.1

 

1.6

 

18.0

14.0

 

12.0

 

Central Valley

 

 

 

 

 

 

 

 

 

 

Fresno

2.9

3.1

 

1.8

 

13.0

8.0

 

7.0

 

Glenn

4.2

4.4

 

3.1

 

52.0

7.0

 

7.5

 

Kern

2.4

2.9

 

1.8

 

18.0

12.0

 

8.0

 

Kings

2.3

2.5

 

1.8

 

12.5

13.0

 

6.0

 

Madera

3.7

3.4

 

3.2

 

17.0

14.5

 

11.0

 

Merced

3.5

3.4

 

2.0

 

16.5

15.0

 

10.0

 

Placer

3.0

3.3

 

1.5

 

21.0

14.0

 

7.0

 

Sacramento

2.6

2.7

 

1.7

 

16.0

11.0

 

7.0

 

San Benito

7.7

4.1

 

2.0

 

30.0

22.0

 

11.0

 

San Joaquin

2.9

3.8

 

2.2

 

19.0

14.0

 

8.0

 

Stanislaus

2.9

3.3

 

1.8

 

16.0

12.0

 

7.0

 

Tulare

2.7

2.6

 

2.1

 

12.0

12.0

 

7.0

 

Far North

 

 

 

 

 

 

 

 

 

 

Butte

3.4

3.0

 

2.2

 

19.0

12.5

 

8.0

 

Lassen

4.6

2.9

 

4.3

 

70.0

70.5

 

102.0

 

Plumas

4.1

3.7

 

6.4

 

64.0

58.5

 

59.0

 

Shasta

3.3

3.8

 

2.4

 

21.5

14.0

 

8.0

 

Siskiyou

4.5

5.0

 

4.8

 

51.0

31.0

 

13.0

 

Tehama

6.4

6.4

 

4.1

 

53.5

59.0

 

40.0

 

Other Calif. Counties

 

 

 

 

 

 

 

 

 

 

Amador

4.8

6.0

 

2.9

 

28.5

18.0

 

10.5

 

Calaveras

3.3

4.1

 

2.6

 

57.5

53.5

 

52.0

 

Del Norte

3.2

3.8

 

4.7

 

58.0

83.0

 

68.5

 

El Dorado

3.3

3.9

 

2.0

 

32.0

25.5

 

12.0

 

Humboldt

3.6

4.7

 

2.4

 

18.5

11.0

 

11.0

 

Lake

6.7

5.4

 

3.9

 

39.0

15.0

 

13.0

 

Mariposa

3.8

5.7

 

3.4

 

13.0

10.0

 

27.0

 

Mendocino

6.4

7.6

 

3.7

 

74.5

69.0

 

50.0

 

Mono

4.6

6.2

 

2.7

 

55.0

62.0

 

71.0

 

Nevada

3.4

3.7

 

2.6

 

35.0

23.0

 

12.0

 

Sutter

2.6

3.4

 

1.7

 

23.0

10.0

 

8.0

 

Tuolumne

4.3

3.9

 

2.7

 

69.5

55.0

 

10.5

 

Yolo

2.3

3.2

 

1.8

 

16.0

10.0

 

9.0

 

Yuba

4.1

3.6

 

1.6

 

26.0

18.0

 

7.0

 

r = revised

 

Categories: Uncategorized
Tags: avocados, california, Fallbrook, groves, realtor, sunshine properties real estate, land for sale, agent, for sale, house, homes, home, mortgage , buying, selling, house for sale, estate, manufactured home
September
14

September 14th, 2022 by

Mortgage Rates Continue Upward Climb, but Home Prices Decelerate

Average mortgage rates continue to climb higher, which has resulted in home price growth slowing meaningfully in June.

By Erika Giovanetti
|
Sept. 6, 2022, at 2:59 p.m.

U.S. News & World Report

Mortgage Rates Rise Again to 5.66%

Portrait of a couple with financial problems looking at document in financial adviser's office

The high interest rates of the summer have translated to inflated borrowing costs for those applying for a mortgage. (GETTY IMAGES)

Mortgage rates rose for the second week in a row, according to Freddie Mac, with rates on a 30-year mortgage averaging 5.66%. That's nearly double the 2.87% interest rate seen during the same week last year. Rates also rose for 15-year fixed and 5/1 adjustable-rate mortgages – both of which have substantially higher borrowing costs compared with just a year ago. Here are the current mortgage interest rates, as of Sept. 1:

  • 30-year fixed: 5.66% with 0.8 point (up from 5.55% a week ago, up from 2.87% a year ago).
  • 15-year fixed: 4.98% with 0.8 point (up from 4.85% a week ago, up from 2.18% a year ago).
  • 5/1-year adjustable: 4.51% with 0.4 point (up from 4.36% a week ago, up from 2.43% a year ago).

ERIKA GIOVANETTI

[ 

READ:

Best Mortgage Lenders. ]

"The market's renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago. The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration."

– Sam Khater, Freddie Mac's chief economist, in a Sept. 1 statement

This summer's higher interest rates translate to inflated borrowing costs for mortgage applicants. Last year, when 30-year fixed mortgage rates averaged 2.87%, a homebuyer purchasing a $350,000 property with 20% down could expect a monthly principal and interest payment of $1,160. But with today's average rate of 5.66%, those monthly payments for the same loan would be considerably higher at $1,618.

WEEK OF SEPT. 2, 2021 WEEK OF SEPT. 1, 2022
Average Mortgage Rate 2.87% 5.66%
Monthly Principal & Interest Payment $1,160 $1,618
Total Interest Paid $138,142 $302,509
Total Mortgage Cost $418,142 $582,509

*Borrowing costs for a $350,000 property on a 30-year fixed-rate mortgage with a 20% down payment.

As a consequence of much higher mortgage rates, homebuyers have had to adjust their expectations when it comes to maximum loan amount. To keep monthly payments about the same as before ($1,155 per month), a borrower with 20% down today would need to look at a home price of $250,000.

The strength in demand for lower-priced homes has led sellers to "recalibrate" their pricing strategy, as Khater says above. There simply aren't as many buyers who can afford the monthly payments on a $350,000 home compared with this time last year. And as you'll see below, this has led to a noteworthy slowdown in home price growth.

[ 

COMPARE:

Mortgage and Refinance Rates in Your Area. ]

Indicator of the Week: Home Price Deceleration

We now (finally) have concrete data from the Federal Housing Finance Agency that home price growth has meaningfully slowed. The index still hasn't yet posted a loss – home prices rose 0.1% between May and June – but it's a significant decline from the about 1.5% monthly growth seen in 2022 so far.

The slowdown in home price growth has led FHFA officials to declare home price deceleration, a welcome reprieve from the past two years of unsustainable levels of appreciation.

ERIKA GIOVANETTI

"Housing prices grew quickly through most of the second quarter of 2022, but a deceleration has appeared in the June monthly data," FHFA supervisory economist William Doerner says in a news release. "The pace of growth has subsided recently, which is consistent with other recent housing data."

There's a real possibility that home price growth will slow even more during the rest of the third quarter of the year, from July through September. It's even plausible that home prices will decline during this time, but there's no indication yet that future depreciation will erase the five- and six-figure equity gains many homeowners made over the past several years of rapid appreciation.

[ 

READ:

Best Mortgage Refinance Lenders. ]

While this data may send signals of a housing recession for the nation's homebuilders – an indicator mentioned in last week's column – it may be good news for the many prospective buyers who had previously been priced out of the market due to the one-two punch of rising home prices and higher mortgage rates.

As home price growth moderates, homebuyers who had been waiting on the sidelines may be able to jump into a more balanced market. But the unfortunate reality is that these buyers may never get a chance to lock in a sub-3% rate for a 30-year mortgage, which will keep their monthly payments elevated despite cooling home prices. Mortgage rates are likely to stay higher until inflation reaches a more sustainable level, and that could take several years.

The good news: Homebuyers can potentially take advantage of a refinance a few years down the line, giving them an opportunity to reduce future borrowing costs while starting to build wealth through homeownership today.

Categories: Uncategorized
Tags: california, Fallbrook, sunshine properties real estate, agent, for sale, home, mortgage , selling, house for sale, manufactured home
September
14

September 14th, 2022 by

CALIFORNIA AVOCADO EXPORT PROMOTIONS IN SOUTH KOREA EXCEED BENCHMARKED GOALS

  • Sep 06, 2022

With avocado handlers continuing to export California avocados to South Korea, the California Avocado Commission utilized Market Access Program grant funds to develop digital and in-store promotional activities in this market. Since avocados are relatively new to consumers in South Korea, these programs were designed to generate California avocado brand awareness as well as awareness of the nutritional value and versatility of the fruit. Throughout April and May of 2022, the Commission hosted verbal demos with California avocado signage, virtual and in-person cooking classes, partnered with celebrity chefs and ran online marketing to generate demand, increase sales and build loyalty for the Golden State fruit. All of the promotional acti...

Click Here to Read More...

Categories: Uncategorized
Tags: avocados, california, Fallbrook, groves, realtor, sunshine properties real estate, agent, for sale, house, buying, selling, estate
September
14

September 14th, 2022 by

For release:
August 11, 2022

 California housing affordability slides to lowest level in nearly 15 years in second-quarter 2022 as home prices set record highs and interest rates surge, C.A.R. reports

  • Sixteen percent of California households could afford to purchase the $883,370 median-priced home in the second quarter of 2022, down from 24 percent in first-quarter 2022 and down from 23 percent in second-quarter 2021.

  • A minimum annual income of $199,200 was needed to make monthly payments of $4,980, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 5.39 percent interest rate.

  • One-fourth of California home buyers were able to purchase the $677,000 median-priced condo or townhome. A minimum annual income of $152,800 was required to make a monthly payment of $3,820.
  • Infographic: https://www.car.org/Global/Infographics/HAI-2022-Q2

LOS ANGELES (Aug. 11) – Housing affordability in California fell below 20 percent and slid to the lowest level in nearly 15 years as home prices soared to record highs in April and May and interest rates jumped to levels not seen in more than 13 years, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2022 slid to 16 percent from 24 percent in the first quarter of 2022 and was down from 23 percent in the second quarter of 2021, according to C.A.R.'s Traditional Housing Affordability Index (HAI). California hit a peak high affordability index of 56 percent in the first quarter of 2012.

C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $199,200 was needed to qualify for the purchase of a $883,370 statewide median-priced, existing single-family home in the second quarter of 2022. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $4,980, assuming a 20 percent down payment and an effective composite interest rate of 5.39 percent. The effective composite interest rate was 3.97 percent in first-quarter 2022 and 3.20 percent in second-quarter 2021. The average 30-year fixed-rate mortgage hit the highest level in more than 13 years in June as the Federal Reserve continued to raise rates aggressively in the second quarter.

With the median price of condominiums and townhomes reaching another record high in second-quarter 2022, affordability for condos and townhomes fell from the previous quarter. Twenty-five percent of California households earned the minimum income to qualify for the purchase of a $677,000 median-priced condo/townhome in the second quarter of 2022, which required an annual income of $152,800 to make monthly payments of $3,820. The second quarter 2022 figure was down from 37 percent a year ago.

Nationwide housing affordability also plunged in second-quarter 2022. Compared with California, nearly four in ten (38 percent) of the nation's households could afford to purchase a $413,500 median-priced home, which required a minimum annual income of $93,200 to make monthly payments of $2,330. Nationwide affordability was a revised 49 percent a year ago.

Key points from the second-quarter 2022 Housing Affordability report include:

  • Compared to the previous quarter, housing affordability in the second quarter of 2022 declined in all but two of 51 counties. Affordability remained level in Glenn and Santa Cruz counties.
  • In the nine-county San Francisco Bay Area, affordability declined from the previous quarter in all counties. Alameda County and Napa tied for the least affordable Bay Area counties, at just 15 percent of households able to purchase the $1,500,000 and $1,005,000 median-priced home, respectively. Twenty-eight percent of Solano County households could afford the $625,000 median-priced home, making it the most affordable Bay Area county.

  • In the Southern California region, housing affordability deteriorated in all counties. Orange County was the least affordable at 12 percent, while San Bernardino County was the most affordable at 30 percent of households able to purchase the $493,000 median-priced home.

     

  • In the Central Valley region, Kings County was the most affordable at 39 percent, and San Benito was the least affordable at 17 percent.

  • In the Central Coast region, Santa Barbara County was the least affordable at 10 percent, and Monterey and Santa Cruz tied for the most affordable at 13 percent.

     

  • For the state as a whole, Lassen (54 percent) remained the most affordable county in California in the second quarter of 2022, followed by Kings (39 percent), Glenn (36 percent) and Shasta (36 percent). Lassen County also required the lowest minimum qualifying income ($58,800) of all counties in California to purchase a median-priced home and was the only county in the state with a minimum required income less than $60,000.

     

  • Mono (6 percent), Santa Barbara (10 percent), San Luis Obispo (12 percent) and Orange (12 percent) were the least affordable counties in California, with each requiring at least a minimum income of $202,800 to purchase a median-priced home in the county. San Mateo required the highest minimum qualifying income to buy a median-priced home, surpassing the $500,000 benchmark for the first time to reach a record high of $512,000. Three other counties in California requiring a minimum qualifying income of over $400,000 in second-quarter 2022 were San Francisco ($450,800), Marin ($434,800) and Santa Clara ($428,400).

     

  • Housing affordability declined the most on a year-over-year basis in Kings, dropping 17.1 points from the previous year. Mariposa (14.8 points) and Siskiyou (14.4 points) had the second and the third largest year-over-year dips in the latest quarter. Like the rest of the state, interest rate and home price surges from a year ago were the primary factors that led to the sharp drop in affordability in these counties.

See C.A.R.'s historical housing affordability data.

See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 217,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

 

# # #

 

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
Second quarter 2022

 

Second quarter 2022

C.A.R. Traditional Housing Affordability Index

STATE/REGION/COUNTY

Qtr. 2

2022

Qtr. 1

2022

 

Qtr. 2

2021

Median Home Price

Monthly Payment Including Taxes & Insurance

Minimum Qualifying Income

Calif. Single-family home

16

24

 

23

 

$883,370

$4,980

$199,200

Calif. Condo/Townhome

25

32

 

37

 

$677,000

$3,820

$152,800

Los Angeles Metro Area

17

24

 

24

 

$800,000

$4,510

$180,400

Inland Empire

24

31

 

36

 

$585,000

$3,300

$132,000

San Francisco Bay Area

18

20

 

19

 

$1,495,000

$8,430

$337,200

United States

38

47

 

49

r

$413,500

$2,330

$93,200

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

Alameda

15

17

 

18

 

$1,500,000

$8,460

$338,400

Contra Costa

22

30

 

26

 

$1,001,080

$5,640

$225,600

Marin

17

21

 

21

 

$1,928,000

$10,870

$434,800

Napa

15

20

 

23

 

$1,005,000

$5,670

$226,800

San Francisco

17

20

 

19

 

$2,000,000

$11,270

$450,800

San Mateo

15

18

 

17

 

$2,270,000

$12,800

$512,000

Santa Clara

18

20

 

21

 

$1,900,000

$10,710

$428,400

Solano

28

37

 

40

 

$625,000

$3,520

$140,800

Sonoma

17

23

 

25

 

$865,500

$4,880

$195,200

Southern California

 

 

 

 

 

 

 

 

Los Angeles

16

20

 

22

 

$825,650

$4,650

$186,000

Orange

12

13

 

17

 

$1,300,000

$7,330

$293,200

Riverside

21

28

 

33

 

$640,000

$3,610

$144,400

San Bernardino

30

39

 

43

 

$493,000

$2,780

$111,200

San Diego

14

19

 

22

 

$965,870

$5,450

$218,000

Ventura

15

21

 

23

 

$939,000

$5,290

$211,600

Central Coast

 

 

 

 

 

 

 

 

Monterey

13

16

 

18

 

$875,000

$4,930

$197,200

San Luis Obispo

12

18

 

21

 

$900,000

$5,070

$202,800

Santa Barbara

10

12

 

13

 

$1,162,500

$6,550

$262,000

Santa Cruz

13

13

 

15

 

$1,350,000

$7,610

$304,400

Central Valley

 

 

 

 

 

 

 

 

Fresno

31

37

 

43

 

$424,500

$2,390

$95,600

Glenn

36

36

 

45

 

$325,500

$1,830

$73,200

Kern

32

38

 

45

 

$385,000

$2,170

$86,800

Kings

39

51

 

56

 

$357,700

$2,020

$80,800

Madera

32

38

 

44

 

$420,140

$2,370

$94,800

Merced

34

40

 

44

 

$400,000

$2,250

$90,000

Placer

27

34

 

35

 

$725,000

$4,090

$163,600

Sacramento

27

34

 

38

 

$570,000

$3,210

$128,400

San Benito

17

24

 

25

 

$859,000

$4,840

$193,600

San Joaquin

26

34

 

37

 

$560,000

$3,160

$126,400

Stanislaus

28

36

 

40

 

$480,000

$2,710

$108,400

Tulare

34

41

 

45

 

$371,000

$2,090

$83,600

Far North

 

 

 

 

 

 

 

 

Butte

28

33

 

33

 

$465,000

$2,620

$104,800

Lassen

54

61

 

62

 

$260,000

$1,470

$58,800

Plumas

32

36

 

39

 

$424,000

$2,390

$95,600

Shasta

36

42

 

45

 

$395,000

$2,230

$89,200

Siskiyou

30

42

 

44

 

$366,000

$2,060

$82,400

Tehama

33

35

 

38

 

$347,500

$1,960

$78,400

Other Calif. Counties

 

 

 

 

 

 

 

 

Amador

32

40

 

40

 

$440,000

$2,480

$99,200

Calaveras

29

35

 

37

 

$500,000

$2,820

$112,800

Del Norte

31

32

 

35

 

$350,000

$1,970

$78,800

El Dorado

24

29

 

31

 

$720,000

$4,060

$162,400

Humboldt

24

30

 

32

 

$451,500

$2,550

$102,000

Lake

33

38

 

43

 

$349,000

$1,970

$78,800

Mariposa

22

29

 

36

 

$460,000

$2,590

$103,600

Mendocino

15

24

 

23

 

$580,000

$3,270

$130,800

Mono

6

7

 

9

 

$956,500

$5,390

$215,600

Nevada

25

33

 

34

 

$590,000

$3,330

$133,200

Sutter

31

39

 

40

 

$450,000

$2,540

$101,600

Tuolumne

33

38

 

44

 

$435,000

$2,450

$98,000

Yolo

23

28

 

32

 

$655,000

$3,690

$147,600

Yuba

27

33

 

39

 

$445,000

$2,510

$100,400

r = revised

article belongs to CAR.org

Categories: Uncategorized
Tags: california, realtor, for sale, house, homes, buying, selling, house for sale, estate
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