Silicon Valley Real Estate Market Update 7/27/2023

Here's the weekly round-up of news. Check it out, save it for later, and/or share it with your friends. 

 

Young buyers drive increase in homeownership A surge in young buyers during the coronavirus pandemic has increased the home-ownership rate, according to a report by the Census Bureau. Between 2019 and 2022, the ownership rate recovered nearly half of the decrease that occurred due to the 2007-10 mortgage foreclosure crisis. Full Story: The Washington Times (7/25) 

 

Home sales drop while prices surge near record high Existing-home sales slowed again last month, but aspiring home buyers continue to face competition for limited inventory. Read more from NAR's latest housing report. Full Story: REALTOR® Magazine (7/20) 

 

It's a good time for investors to unload As rental rates slow, owners may consider returning inventory to the market Full Story: REALTOR® Magazine (7/19) 

 

Report: Single-family, multifamily housing starts decline Single-family housing starts declined last month, but permits for future construction rose to the highest level in 12 months, according to the Commerce Department. Meanwhile, starts for multifamily projects dropped 11.6%. Full Story: Reuters (7/19) 

 

Home refinancings respond to rate dip Mortgage interest rates experienced a slight decrease last week, leading to a 1.1% increase in total mortgage application volume compared to the previous week, according to the Mortgage Bankers Association. While this dip in rates spurred a 7% jump in home loan refinancing applications, it had little impact on potential buyers, with applications for home purchases falling by 1% for the week and being 21% lower than the same week last year. Full Story: CNBC (7/19) 

 

Two thirds of Americans waiting own a second home Having more than one home is now the norm for wealthy Americans, according to an Ameriprise Financial survey that found that about two out of three own a second home -- and one-third of those who don't already say they're interested in acquiring one in the future. Most who own a second home purchased their home as a vacation residence rather than as a source of rental income, and one common financial reason for purchasing a second home among high-net-worth individuals is that they plan to eventually make it their primary residence in the future. Full Story: Yahoo Finance

 

What experts say about buying a home now and refinancing later  With interest rates remaining high, would-be homebuyers may be asking themselves: In this economic climate should I buy a home now at high rates and refinance later, or should I wait for rates to fall? For instance, buyers who are in the market while interest rates are high may have certain advantages that they otherwise wouldn't, such as less competition and more negotiating power. While they still have the option to refinance, they also have the opportunity to build equity and wealth. Experts also advice as with many financial questions, it will depend on your financial situation and forces outside your control. Full Story: CBS News

 

Elevated Interest Rates and Limited New Listings Suppress California Home Sales in June Elevated interest rates and a shortage of homes for sale continued to dictate the market in June, as California home sales remained below the 300,000 annualized pace for the ninth consecutive month, C.A.R. reported. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 277,490 in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. June’s statewide median home price was $838,260, up 0.3 percent from May and down 2.4 percent from June 2022.  Full Story: CAR.org

 

Just 1% of homes have changed hands this year Roughly 14 of every 1,000 U.S. homes changed hands during the first six months of 2023, according to a new report from Redfin. That's down from 19 of every 1,000 during the same period of 2019 and the lowest turnover rate in at least a decade. The survey found that homebuyers in Northern California have the lowest turnover rate in the U.S. Just six of every 1,000 homes in San Jose changed hands in the first half of 2023, the lowest rate of the 50 most populous U.S. metros. It's followed closely by Oakland, San Diego, Los Angeles, Sacramento and Anaheim, all places where about eight of every 1,000 homes turned over to a new owner. Full Story: Redfin

 

Market Update June home sales came in below the 300,000-benchmark for the ninth consecutive month, as rates remained elevated in the past couple of months. The year-over-year decline, however, moderated further with the annual dip dropping below 20% for the first time in 12 months. Meanwhile, the statewide median price remained above $800,000 for the third straight month, as tight supply continued to provide upward support. Monthly price dips in the coming months are anticipated, however, as the market goes through its typical seasonal pattern and rates remain elevated for most if not the entire third quarter. As for the economy, consumers appear to be more resilient than predicted six months ago, and economists are lowering the odds of a recession for the U.S. That’s good news, except a solid economy could mean a delay in the Fed loosening its monetary policy, which could be translated as mortgage rates staying high for a little longer.  Full Story CAR Market Minute Write Up

 

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