General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSouthern California home sales crash in warning sign to nation
Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years. Sales of both new and existing houses and condominiums dropped by 11.8 percent year over year as prices shot up to a record high, according to CoreLogic. The report covers Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange Counties.
Sales fell 1.1 percent compared with May, but the average change from May to June, going back to 1988, is a 6 percent gain.
The weakness was especially apparent in sales of newly built homes, which were 47 percent below the June average. Part of that is that builders are putting up fewer homes, so there is simply less to sell.
A portion of last months year-over-year sales decline reflects one less business day for deals to be recorded compared with June 2017, noted Andrew LePage, a CoreLogic analyst. But affordability and inventory constraints are likely the main culprits in last months sales slowdown, which applied to all six of the regions counties and across most of the major price categories.
https://www.msn.com/en-us/money/realestate/southern-california-home-sales-crash-in-warning-sign-to-nation/ar-AAAmrd4?li=BBnb7Kz
2008 says hello
spooky3
(34,303 posts)hear "crash." This article reports that prices are going "up to a record high" but the # of homes sold has declined a lot. That's happening in a lot of places primarily because owners aren't listing, and prices are too high for many would-be buyers.
Tiggeroshii
(11,088 posts)Or will prices keep going up even though people arent buying?
spooky3
(34,303 posts)Mariana
(14,849 posts)"Sales fell 1.1 percent compared with May," says the article. People are buying.
Tiggeroshii
(11,088 posts)uponit7771
(90,225 posts)spooky3
(34,303 posts)BeyondGeography
(39,284 posts)$500k cap on mortgage interest and $10K on state and local taxes. Kills the deep blue bicoastal areas that didn't vote for him.
roamer65
(36,739 posts)I can see them springing up in CA, NY and New England first.
CreekDog
(46,192 posts)The 10k cap on State and Local taxes really changes the affordability picture.
a 750k house will have property taxes about $8000/year. Prior to this, it was fully deductible which for someone in the 25% tax bracket, would make those taxes equal to $6000/year.
Now the cap will apply to the combined state income and property taxes and even those who aren't necessarily highly paid will hit that cap before they've paid much property tax.
And before anyone scoffs at homebuyers here, because of their income, keep in mind that a lot of us couldn't find rentals or if we could, would be priced out of them in a matter of years.
So buying a house, whatever one has to do, with a flat rate mortgage, keeps one's mortgage payment locked for the life of the loan. It is the only thing that keeps people whose wages don't rise as fast as rents or home prices here housed. Everyone should have housing stability, not just those that can afford it because they bought 10, 20, 30 years ago.
BeyondGeography
(39,284 posts)We have fairly middle-of-the-road million dollar homes in the burbs here with $30k-plus property tax bills, not to mention the income you need to generate in order to afford that. Absent a repeal of this bill (workarounds have been discussed but its not that easy), the tax bill will torpedo the property market here, and not just at the higher levels. Many middle class people will be on the wrong side of that cap.
kimbutgar
(20,882 posts)Usually homes sell on the first weekend showing. Not for theses homes that you got to put money into to improve. People with money are getting cautious and nervous.
SoCalDem
(103,856 posts)It was also the highest price in that neighborhood in a long time...
Of course it was worth every penny... totally remodeled with top of the line appliances..and 20" travertine flooring throughout..
kimbutgar
(20,882 posts)My neighborhood is ususlly hot because its close to the freeways and public transportation is in walking distance and there is a good neighborhood elementary school.
This is not usual for this neighborhood.
dembotoz
(16,739 posts)Some things just are not worth the cash..
Volaris
(10,260 posts)HUD should invest a lot of money in putting people into home loans for SIMPLE INTEREST. it would turbocharge the economy and reduce overall rent rates as an added bonus. Only problem is are there enough houses that can be picked up for cheap?, and the answer in 2008 was YES, but we let the damn banks keep them all...dumb of us (and of obama, I think, but he was listening to Geithner so of course that's what happened).
CreekDog
(46,192 posts)what the hell do you expect?
you just act like we can up and leave because it's not a good deal here.
GET REAL. I didn't tell you to abandon your job and your family just because of housing prices where you live.
Xolodno
(6,341 posts)...the nation catches a cold.
Continuing rising prices on homes is not sustainable.
highmindedhavi
(355 posts)$1,999,000
https://www.zillow.com/homedetails/5000-Templeton-St-Los-Angeles-CA--32/20642043_zpid/?fullpage=true
My neighborhood is being gentrified, , all my new neighbors are non-hispanic,been here since 1971, prices are still going up
2 others listed this week:
$859,000
3 beds 2 baths 1,564 sqft
https://www.zillow.com/homedetails/4809-Templeton-St-Los-Angeles-CA--32/20639744_zpid/?fullpage=true
$818,000
3 beds 2 baths 1,869 sqft
https://www.zillow.com/homedetails/4678-Cassatt-St-Los-Angeles-CA--32/20639156_zpid/?fullpage=true
R B Garr
(16,920 posts)They want almost $300,000 more for it now. That is one huge profit flip.
The flippers really drive the prices up. Its hard to find entry level condos without competing with all cash flippers. Even the higher end homes get a lot of all cash offers.