Should I Buy California Real Estate in 2023 by Richard Uzelac

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The Federal Housing Finance Agency publishes the House Price index, which is defined as the measure of the movement of single-family prices in the whole nation, United States. Fannie Mae and Freddie Mac provide monthly and quarterly data for the Federal Housing Finance Agency’s House Price Index (HPI). Fannie is a term derived from Federal National Mortgage Association (FNMA), while Freddie mac is from FHLMC or the Federal Home Loan Mortgage Corp

The S&P CoreLogic Case-Shiller Indices track the change in the value of single-family homes in the U.S., but they don’t cover newly constructed houses, condos, and co-ops. 

Buying Real Estate in CA in 2023?

According to CARS (California Association of Realtors) median forecast for California real estate for the year 2023, it will be a moderate recession as the mortgage interest rate has risen from the past couple of months and will still continue to be at this level towards the end of the year. The House Market in California is still at a rough pace due to inflation.  According to CAR, Median Home prices are gonna DECREASE by 8.8 % to $758 600 by 2023, a little much less than the projected price in 2022, which is at $831 460. That is far 5.7% higher, which is good news for individuals and families who are looking to buy median houses in California. However, sadly, because interest rates are going high at around 6.5 percent and are forecasted to stay at this level because of inflation- they still contribute to a weaker housing market, making “purchase power” less for consumers interested in buying and affecting “House Affordability”.  CAR forecasted that sales would turn pretty much less, which is down to 7.2 percent from 2022 single-family house units sales forecasted at 359 220, and that is 333 450 units. The percentage of home buyers who will be able to afford a median-priced unit and existing single-family homes in California in the first quarter of 2022 is 24 percent down compared to the 2021 fourth quarter, which was 25 percent. In other words, Eighty-two percent of California households can’t afford a medium-priced home right now, which is a huge issue. Inflation is also going to keep interest rates high, which is going to suppress home buying. If you can afford to buy a median home, you should purchase one now or in 2023 because prices are going to increase, and interest rates are going to rise in the near future and houses in California have been increasing in the range of 5 – 10 percent in Court Logic over the last 10 yrs. In economics, the supply and demand of houses – also known as the housing market – is determined by the level of economic activity and population growth in a given area. The question is would you be able to afford the prices for California houses in the years 2023 and so on? 

According to Marco Santarelli of CAR

-In the fourth quarter of 2022, you had to make $158,000 to qualify for a $797,000 statewide median-priced, existing single-family home.

-For a 30-year, fixed-rate loan with a 20% down payment and with an effective composite interest rate of 3.97%, the monthly payment would be $3,950.

– A minimum income of $148,000 was needed to make $3,700 a month

– For a monthly payment of $3,170, you had to make $126,800 a year.

Why do people stay in California while others are looking to move out?

California truly has it all, if you think about it- Richard Uzelac

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1. Hard-to-beat weather – great for any outdoor activities! 

There are a lot of great places to ski in the California mountains during the winter, beaches to surf in the summer; a variety of things you can enjoy without having to leave the state.

 

 2.Hollywood and Silicon Valley are two of the biggest and most admired industries in the world, along with tons of others.

 3.In California, there are several of the greatest music venues in the world (Hollywood Bowl,   Troubadour) are among the biggest in the world.

4.Home of the world’s top crops

5.California is home to many large tech companies and startups, including giants like Apple and Google, as well as many smaller firms.

6. Home of the best and diverse exotic restaurants 

7. Californians are generally nice!

 . 

Tips for Prospective Buyers

  • Friendly housing programs – The banks are offering affordable housing loan programs and less down payment to cover your upfront cost in purchasing
 
  • – a bank provided down payment and no closing cost! 

    – 3 percent down payment mortgage!

    – For first time home owners check this article I wrote!

Home Buying Guidelines by Richard Uzelac

For real estate agents who list houses, check out REALTY TECH. The most unbeatable and no.1 Real estate websites in the market. With premium IDX websites that an agent would need to succeed in the industry and a beautiful custom-made website that will suit you.

Richard Uzelac, CEO and Founder of Realty Tech Inc - Provider of most beautiful Real Estate Websites, IDX and Real Estate Leads since 2002 and GoMarketing (Professional Online Marketing Programs)

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