Latest news with #CaliforniaAssociationofRealtors
Yahoo
3 days ago
- Business
- Yahoo
Homebuyers Can Save $200K by Building a New Home Instead of Buying an Existing One in This State
With affordability being a top concern for many prospective homebuyers, those worried about a steep price tag might consider investing in a new build. In California, homebuyers could save hundreds of thousands of dollars by building new rather than purchasing an existing property, according to a new LendingTree report. It revealed that, though, on average, new homes cost more than existing ones across the country, a select few states offer new construction that is significantly more affordable than existing properties. In California, newly constructed homes have a median price of $591,116, while existing homes cost $784,798—a difference of $193,682 more, according to LendingTree. Using data from the National Association of Home Builders and the U.S. Census Bureau 2023 American Community Survey, LendingTree was able to estimate the household income needed for existing homes. Then, it compared the household income required to buy new homes and existing homes by state. This trend is particularly relevant in today's market, where shifting economic sentiment is beginning to shape buyer behavior. 'Many buyers, first-time buyers, or entry-level buyers, instead of just looking at single-family homes or existing homes, are looking at new homes put out by developers and builders,' Oscar Wei, deputy chief economist at the California Association of Realtors, tells Overall, California's median home price dipped to $899,560 in June, marking a second consecutive monthly decline and falling below $900,000 for the first time in three months, as per the California Association of Realtors June Home Sales report. 'The market is a little bit more balanced because we do have a bit more supply in the last few months,' he explains. 'Buyers are thinking, 'OK, well, now we have a little bit more inventory available.' And even though mortgage rates have come down, we do still have some uncertainty.' But the discrepancy between new- and existing-home values in California is the largest gap in the country, according to LendingTree. The state has struggled to keep up with housing demands for decades due to a combination of factors, including rapid population growth, high construction costs, restrictive zoning regulations, and lengthy permitting processes. 'I almost see two different Californias in terms of development,' Victor Currie, real estate agent at Douglas Elliman Real Estate, tells 'The Central Valley and Inland Empire are growth areas with lots of developable land, so prices are more reasonable, and new-home developers can sometimes offer slightly lower interest rates and other incentives to buyers than standard mortgage numbers. 'But when people in other parts of the country think of California, they're usually talking about Los Angeles, Orange County, the Bay Area, or San Diego, and there is a limit to how much new development can be done in the large metro areas.' The L.A. County's destructive wildfires also directly contributed to the housing shortage, forcing residents into an already competitive market and driving up rental and purchase prices in unaffected areas. Rebuilding in fire-prone areas is tough because of strict new building codes and regulations—increasing costs and potentially delaying reconstruction efforts. However, the bump in inventory in other parts of the Golden State has balanced the market a bit, urging buyers to consider jumping back in, says Wei. 'There's a little bit more supply from builders and developers. Builders and developers are actually willing to lower their price or provide incentives for buyers,' Wei explains. Across the country, new homes cost a median of $537,791 while existing homes cost $391,210, according to the study. The average price difference is $146,581, with new homes being 37.5% more expensive than existing homes. In Connecticut and Pennsylvania, new homes are more than double the cost of existing ones, according to the study. Specifically, new homes in Connecticut cost 125.9% (or $555,660) more on average than existing homes, with Pennsylvania close at 121.4% (or $361,637). Potential pitfalls with new builds Still, the roadblocks to building new homes keep inventory low. Expensive land, permit delays, local fees, high material costs, and labor shortages have limited new construction and increased the competition for existing homes. 'Now, here's an issue that we might be seeing in the last couple of months, maybe even in the second half of the year. Builders and developers started realizing, 'Wow, OK, it looks like we are seeing more existing homes coming onto the market.' And now existing homes are competing with those newly constructed properties,' says Wei. That competition, however, isn't necessarily bad news for buyers—especially those looking to break into the market. 'Choosing a new build helps people achieve homeownership because it often helps clear the biggest obstacle most home buyers can't get around: affordability,' Marco Smith, a real estate agent with The Maryland & Delaware Group, tells 'Many builders are offering seller concessions to help cover the buyer's closing costs and, in some cases, will pay down the buyer's rate, making monthly payments more affordable. So, whether you're looking to spend less upfront or spend less per month, builders can typically get that taken care of when you're buying their new homes,' says Smith. 'As interest rates are higher than they were a few years ago and prices remain strong, many homebuyers are steering away from older homes that may need high-ticket items replaced in the near future. New construction offers the peace of mind that you won't have a roof or HVAC replacement a few years after moving in. These homes also come with warranties,' he adds. Prospective buyers who are considering a new build have a couple of solid options. California, Vermont, and Delaware are leading the list of states where new-home values are lowest. Households in Vermont can expect to pay a median price of $352,739 for a new home, but would have to come up with $386,757 for an existing property—8.8%, or $34,018, more. Delaware follows with the third-highest discrepancy between new- and existing-home values: $373,666 versus $406,266, an 8%, or $32,600, difference. Virginia, Maryland, and Utah households also pay more for existing homes than new-construction properties. 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Daily Mail
4 days ago
- Business
- Daily Mail
California's cheapest place to live looks beautiful and an average home is $286,500 but there's a big drawback
It looks like it offers an idyllic lifestyle with beautiful scenery, small-town living, and rock-bottom prices - but the enclave recently named the most affordable place to buy in California comes with one major caveat. Lassen County, with a population of nearly 30,000, has officially been ranked the cheapest housing market in the state, according to the California Association of Realtors' latest report. The median price for an existing single-family home in Lassen was just $286,500 in June 2025 - a fraction of the $899,560 statewide median and the $1.4 million average seen across the Bay Area. While Lassen offers striking high desert landscapes and unbeatable value, some buyers may be surprised to learn that the local economy has long been tied to the state correctional system. 'There's a large prison there,' said Billy Taylor, a real estate agent based in neighboring Plumas County, 30 minutes from Lassen County. 'A lot of the locals work as prison guards, and others move there to be closer to incarcerated loved ones.' The facility - High Desert State Prison - has been one of the region's largest employers since it opened in 1995. But long before the prison arrived, Lassen County was known for something else entirely. 'It's a very rural town known for cattle ranching and timber harvesting,' Taylor said. 'That's what it was built on - it was strictly ranching before the prison came in.' It's also a draw for outdoor enthusiasts, he added, with 'world-class hunting and fishing,' including large mule deer and the famous Eagle Lake trout, a prized species unique to the area. Susanville, the county seat, has a population of nearly 10,000 and still reflects that rugged, frontier identity - one that may appeal to buyers looking for space, affordability, and access to nature. Taylor emphasized that Lassen County offers exceptional value, particularly for those priced out of more populated markets. 'You can't build a house for what existing homes are selling for,' he said, noting that buyers can find ranchettes with acreage and 'elbow space' at prices rarely seen elsewhere in California. Most homes, he added, are selling below asking price, typically within 5 to 10 percent of list. Known for its high desert terrain and mountain ranges, Lassen County attracts outdoor enthusiasts and budget-conscious buyers alike Lassen isn't the only county offering relative bargains – four others also posted median home prices well below the statewide average, according to the Realtors' report. Lake County at $301,380; Trinity County at $311,000; Siskiyou County at $315,000; and Plumas County at $328,750 are the most affordable in the state. Plumas, in particular, is attracting buyers from Nevada and the greater Reno area, thanks to its mountain views, small–town feel, and access to Lake Almanor – a quiet resort community locals call 'what Tahoe was 30 years ago.' According to Zillow, California's average 30–year fixed mortgage rate stood at 6.88 percent as of July 18. But in Lassen and other rural areas, sellers are showing more flexibility. Jordan Levine, senior vice president of the California Association of Realtors, said homes are staying on the market longer, and sellers are more open to negotiation. 'Amid stabilizing home prices and a greater availability of homes for sale, California's housing market rebounded in June, but remained below year-ago levels,' the Realtors Group said in a news release. Heather Ozur, California Association of Realtors president, added: 'With more properties on the market and price growth flattening, conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market and take advantage of increased negotiating power.' With scenic terrain, low prices, and a slower pace of life, Lassen County may offer an appealing alternative for budget–conscious buyers – as long as they're not deterred by its prison–town identity.
Newsweek
13-06-2025
- Business
- Newsweek
California Faces Housing Crisis: 'No One Is Buying Homes'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. After four consecutive months of year-over-year inventory increases, California is now solidly a buyer's market, which means the supply of homes is greater than the demand for properties in the state. That is happening in part because, as real estate analyst Nick Gerli put it, "no one is buying homes in California." Home sales in the Golden State are hovering just below the lows of the Great Recession, according to a recent report by as sky-high prices and elevated mortgage rates keep buyers on the sidelines of the market. Why It Matters The California housing market experienced great changes during the pandemic, when the rise of remote work allowed many homeowners to relocate from metropolises—such as San Francisco and Los Angeles—to smaller nearby towns or leave the state entirely. While the state saw a slight dip in home prices in early to mid-2020 compared to a year earlier, home prices quickly rebounded and have continued rising steadily until now. Historically high home prices are now playing a crucial role in keeping demand low in the state, together with mortgage rates still hovering just below the 7 percent mark and growing economic uncertainty linked to the effects of President Donald Trump's tariffs. A general view of a home for sale in a residential neighborhood in San Jose, California, on August 15, 2024. A general view of a home for sale in a residential neighborhood in San Jose, California, on August 15, To Know According to data from there were 73,160 active listings in California in May, the highest number since October 2019—before the pandemic homebuying frenzy further shrunk supply in the state. "The rate that housing inventory has been rising for the state is on par with that of the nation. At the national level, inventory of homes for sale rose more than 30 percent year over year in May, which is in line with the double-digit increase for the state of California," Oscar Wei, the deputy chief economist at the California Association of Realtors, told Newsweek. "Active listings typically increase during this time of the year as the period from April to August is considered the spring homebuying season. Homes are being bought during this time frame as many buyers want to settle down before schools start. As such, active listings usually increase month over month from March to April and from April to May," he said. "The growth pace in active listings is slowing down, however, and the level of supply could reach a plateau sometime in June." Several California cities were also among the 50 most populous metropolitan areas in the U.S. with the biggest imbalances between sellers and buyers in April, according to a recent Redfin study. These included Riverside (61.3 percent difference), Sacramento (44.9 percent), Los Angeles (44.8 percent), Anaheim (38.7 percent) and Oakland (36.2 percent). This should be great news for prospective homebuyers in the state who, as in the rest of the country, have been struggling with limited inventory for the past few years. But according to the data, buyers aren't showing up for these listings. The state reported about 25,100 home sales in April—up 1.6 percent from a year earlier but "down 20 percent from the long-term average and 40 percent below the pandemic peak," according to Gerli, the CEO and founder of the real estate platform Reventure App. "Economic uncertainty and elevated mortgage rates, which make costs of borrowing high, are primary factors that keep housing demand/home sales at low levels in recent months," Wei said, adding, "Insurance availability and affordability are also having a negative effect on home sales." Gerli wrote on X, "This crisis in homebuyer demand is now causing home prices to drop." Last month, according to data from Reventure App, home values in California fell by 0.42 percent from March, the fourth biggest decline in the U.S. "It was the fourth straight month where values declined," Gerli said. "The reason prices are now dropping is because the low demand is being combined with a rise in listings," the real estate analyst added. "Inventory had been low in California for much of the last couple years, but now it's spiking." Despite the recent downward pressure on prices in California, the cost of buying a home remains high—much more than many can afford. Home values might be dropping on a monthly basis, but they are still rising year over year. In April, the average home value of a typical California home was $796,255, according to up 1.3 percent from a year earlier. The median sale price of a California home was $854,700 in the same month, up 0.2 percent from a year earlier, according to Redfin. Five years earlier, in April 2020, a typical California home could still be bought for $571,000. The numbers of homes sold with a price cut—at 34.8 percent of all sales—are on the rise, up 10.2 from a year earlier. However, the numbers of homes sold above list price, at 40.3 percent, is decreasing and was down by 9.7 percent in April year over year. What People Are Saying Oscar Wei, the deputy chief economist at the California Association of Realtors, told Newsweek: "Buyers are waiting for the costs of homeownership to come down. That could mean lower mortgage rates or lower home prices. Mortgage rates should slowly decline and will likely moderate slightly by the end of the year." He added: "The market may have already seen the peak price for the year and could soften in the next few months. Buyers could also be waiting for some clarity on the market direction, as consumers remain concerned about how tariffs and the ongoing trade tensions could affect the economy and their personal finances." Hannah Jones, a senior economic research analyst at said in a recent report: "Home price growth accelerated in California during the early days of the [COVID-19] pandemic, driving the state's median listing price to new heights. High home prices and rising mortgage rates put homeownership out of reach for many would-be buyers." Real estate analyst Wolf Richter wrote in a recent report: "The problem is demand in California. It has essentially collapsed. New listings aren't that high. But because the inventory of homes for sale doesn't sell, and new listings are added to it, the total piled up." Real estate analyst Lance Lambert wrote in a recent report: "More California housing markets are climbing out of that inventory deficit. And if the current trajectory holds, California could soon be out of its Pandemic Housing Boom era inventory hole." Redfin Senior Economist Asad Khan said in a recent news release: "The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall. Many are still holding out hope that their home is the exception and will fetch top dollar. "But as sellers see their homes sit longer on the market and notice fewer buyers coming through on tour, more of them will realize that the market has adjusted and reset their expectations accordingly." What Happens Next Experts now expect home prices to dip slightly across the country by the end of the year, including in parts of California. Zillow expects prices to fall in 31 cities in the state, including San Francisco (projected -5.2 percent), San Jose (-3.8 percent), Sacramento (-3 percent), Los Angeles (-1.2 percent) and San Diego (-0.7 percent). According to Wei, home prices should begin to come down from the record high set in April as we enter the second half of the year. "Seasonality will play a role in the price moderation, and an increase in housing supply will also relieve some upward price pressure," he said. "We expect price crops across the state to be mild but the changes between months could appear volatile in some areas because of their low number of observations. In general, we still expect a mild single-digit year-over-year increase for the year as a whole for the state and most regions."
Yahoo
06-05-2025
- Business
- Yahoo
California Home Sales Hover Below Great Recession Low, Sending Supply of Listings Surging
The supply of homes listed for sale in California continued to surge last month, as home sales activity in the Golden State remained weak and hovered below the lows of the Great Recession. The number of active listings in California topped 64,900 in April, a post-pandemic high and beating the April 2020 level, according to the economic research team's monthly housing trends report. Inventory has been rising across the country, but the gain is more pronounced in California, where the number of active listings was up 50% in April from a year earlier, compared to a 31% rise nationally. More sellers are entering the market in California, with new listings up 9% in April from a year earlier, similar to the national gain. But the biggest driver of the state's inventory boom is a prolonged, historic slowdown in sales. Since mid-2023, total sales of single-family homes and condos in California have hovered below the depths reached during the Great Recession in 2008 on a 12-month rolling total basis, according to real estate data provider ATTOM. Nationally, total home sales, which include new and existing homes, have also been remarkably sluggish for several years—but the national annual sales pace has remained above Great Recession lows. Sales of existing homes in California remained sluggish in March, falling 2.3% from February, to 277,030, on a seasonally adjusted annualized basis, according to the California Association of Realtors. 'Home sales slowed in March as both buyers and sellers grew more concerned about the ongoing tariff situation and its potential impact on their personal finances,' said CAR President Heather Ozur. Affordability has been a key factor weighing on buyer demand in California, with median home prices there more than eight times the typical household's annual income, among the highest ratio in the country. 'Home price growth accelerated in California during the early days of the [COVID-19] pandemic, driving the state's median listing price to new heights,' says senior economic research analyst Hannah Jones. 'High home prices and rising mortgage rates put homeownership out of reach for many would-be buyers.' Despite the tepid pace of sales, home prices in California have remained remarkably firm. Last month, the median list price in the state was $767,000, virtually unchanged from a year ago, according to data. A supply shortage has helped prop up home prices in California, but as inventory surges in the state, some housing market experts are now watching for those prices to stagnate or even begin to fall. Last month, Nick Gerli, founder and CEO of real estate data startup Reventure App, told that he is monitoring for weakness in markets that have seen the biggest growth in inventory. 'It's very realistic to expect that, based on the more than 50% year-over-year inventory increase in some of these California markets, we're going to see a big slowing in home price growth over the next 12 months,' Gerli said. 'I wouldn't be surprised if prices trend flat across the state or even slightly negative by the end of the year, and particularly in certain markets,' he added. As well, a recent report from ATTOM named California as one of the most vulnerable areas for housing market declines, based on gaps in affordability, underwater mortgages, foreclosures, and unemployment. The report identified 14 California counties as being among the 50 most at-risk in the nation for a housing market downturn. However, Jones predicts that it will take an even bigger pileup of inventory before home prices begin to decline significantly in California. 'While inventory has recovered somewhat, reaching its highest April level in years last month, for-sale options remain well below 2019 levels,' she says. 'Sale prices are likely to stay near recent highs until inventory builds sufficiently to slow the market, which could eventually prompt sellers to adjust their price expectations.' Related Articles
Yahoo
19-04-2025
- Business
- Yahoo
Ventura County home prices flat in March, but sales volume up
The price of a home in Ventura County stayed about flat over the past year, while the number of sales climbed dramatically, a positive sign for a real estate market that has been characterized for years by high prices and sluggish sales activity. The median price of all existing single-family homes sold in Ventura County in March was $940,000, according to the latest data released by the California Association of Realtors. The median is the point at which half of the homes sold for more and half for less. March's median price was 2.4% higher than a year earlier, which is about the same as the rate of inflation over that period. Prices were down 3% from the previous month. There were 297 sales of single-family homes in March, a 24% increase in a year and a 35% increase from the previous month. Because the real estate business is seasonal, with more sales and higher prices in the summer than the winter, year-to-year comparisons are the standard. Still, the 35% month-to-month increase was the biggest gain in sales volume in two years. Sales volume in Ventura County has trended downward for most of the past four years as rising mortgage interest rates have discouraged both sellers and buyers. The most expensive homes in Ventura County in March were in Ojai, which had a median sale price of $1.44 million. Oxnard had the lowest median price at $755,000. Tony Biasotti is an investigative and watchdog reporter for the Ventura County Star. Reach him at tbiasotti@ This story was made possible by a grant from the Ventura County Community Foundation's Fund to Support Local Journalism. This article originally appeared on Ventura County Star: Ventura County home prices flat in March, but sales volume up
