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Weekly Real Estate Roundup – January 22

January 25, 2021

2 MINUTE READ

A new day dawns, California! This week we’re bringing you the latest CA housing figures and unpacking the link between home prices and incomes in the nation’s major cities. Here we go!

CA Jan. Home Sales Put the Pedal to the Metal

What’s this all about?

Early January CA homes sales leapt by more than 30% over last year’s levels during the same time period. Regardless of paltry inventory and public health obstacles, nearly 10,000 homes have already closed through last weekend. On top of that, pending sales rose in every region of the state, suggesting a strong February is coming as well.

What it means

The good news for current and potential sellers continues rolling in, but a grain of salt might be wise. Mortgage application growth is slowing, and unemployment remains a serious problem for many Californians interested in entering the home market or relocating. Though a staggering 3 million Californians are receiving unemployment assistance or insurance, that figure is half of the 6 million residents who were in the same position at the pandemic’s summer peak.

America’s Income-Housing Price Ball & Chain

What’s this all about?

To that point, the disparity between galloping home prices and lethargic incomes means that mortgages take up incrementally more of homeowners’ hard earned money each year. In fact, in 5 major US cities, there has been a more than 50% difference in the rise of incomes and home prices. LA’s have increased 57%, while in Santa Ana, prices rose 77%. Fremont, CA, saw an 88% rise, while in Oakland, CA, price tags are currently around a wince-inducing 90% higher than 10 years ago.

What it means

There are as many ways to solve this problem as there are facets to it. Building more housing in California would certainly go a long way toward reducing home prices, as would increasing wages–both of which are solutions more on the macroeconomic, government-led side of the spectrum. In the meantime, potential home buyers who are less picky about location and more informed about what their budgets can afford them will find this less of a problem than others. Learn what you can afford here.

Start Your Day Strong with These Chia Pudding Recipes

Simple, delicious and nutritious, chia pudding is a no-brainer for anyone looking for an easy and healthy morning meal.

9 Design Ideas to Enhance Garden Views from Inside

Creating a beautiful home connected to the outdoors need not be expensive or difficult. Here are some tips to get you started.

How to Rest (or Reduce) Your Stress in 5 Minutes

We get it–times are more stressful than ever, and outlets to relieve it grow more scarce by the day. This useful how-to can change all that.

Dry January ‘Mocktails’ to Pull you over the Finish Line

Enjoying a booze-free month is a growing national trend we fully support! These alcohol-free concoctions are tasty enough to make one consider pushing on through Feb.

Don’t skip this

Have a great weekend, and see you next Thursday!