Why are California's house prices defying gravity? This week, we're breaking down the latest twists and turns in the housing market as of June 28, 2024. Mortgage applications are showing a slight uptick from last week but are still down a steep 13% compared to last year. Despite the cooling frenzy in house hunting, home prices have soared to a new high of $397,250, with the median asking price climbing to $414,975. High mortgage rates and a dip in buyer demand create a fascinating paradox where rising inventory hasn't led to dropping prices. We discuss what this means for those eyeing to buy, with the average monthly mortgage payment now standing at $2,785 at a 6.87% interest rate.
In our next segment, we turn our spotlight on California's housing market, where prices continue to break records against all odds. The median home price in the Golden State has surged to an eye-watering $813,980. Even with a significant rise in new and actively listed homes, prices remain stubbornly high. We dissect this curious case of soaring prices amid increasing inventory and high mortgage rates, offering insights for both buyers and sellers navigating this unique landscape. Whether you're in the market for a new home or just intrigued by real estate trends, you won't want to miss our expert tips and comprehensive update on these unprecedented times.
This episode is brought to you by Premier Ridge Capital.
Sign Up for our Newsletter and get our FREE E-Book where you'll learn everything you need to know about creating financial freedom through multifamily syndication.
This episode is brought to you by Premier Ridge Capital. Build Generational Wealth As A Passive Investor In Multifamily Real Estate Syndication! Visit www.premierridgecapital.com to find out more.
Why are California's house prices defying gravity? This week, we're breaking down the latest twists and turns in the housing market as of June 28, 2024. Mortgage applications are showing a slight uptick from last week but are still down a steep 13% compared to last year. Despite the cooling frenzy in house hunting, home prices have soared to a new high of $397,250, with the median asking price climbing to $414,975. High mortgage rates and a dip in buyer demand create a fascinating paradox where rising inventory hasn't led to dropping prices. We discuss what this means for those eyeing to buy, with the average monthly mortgage payment now standing at $2,785 at a 6.87% interest rate.
In our next segment, we turn our spotlight on California's housing market, where prices continue to break records against all odds. The median home price in the Golden State has surged to an eye-watering $813,980. Even with a significant rise in new and actively listed homes, prices remain stubbornly high. We dissect this curious case of soaring prices amid increasing inventory and high mortgage rates, offering insights for both buyers and sellers navigating this unique landscape. Whether you're in the market for a new home or just intrigued by real estate trends, you won't want to miss our expert tips and comprehensive update on these unprecedented times.
This episode is brought to you by Premier Ridge Capital.
Sign Up for our Newsletter and get our FREE E-Book where you'll learn everything you need to know about creating financial freedom through multifamily syndication.
This episode is brought to you by Premier Ridge Capital. Build Generational Wealth As A Passive Investor In Multifamily Real Estate Syndication! Visit www.premierridgecapital.com to find out more.
You guys won't believe how much California home prices have risen in just one year. I'll talk about that in a minute, so before that, let's take a look at this week's housing market data. Today is June 28, 2024, and this is your weekly real estate market update. The mortgage application to buy homes were up a tiny little bit this week compared to last week, by just 1%, but way down 13% compared to this time last year. Basically, not many people are applying for mortgages to buy houses right now.
Speaker 1:
I think that's going to change and it looks like house hunting hustle ain't slowing down this week either, but it's not quite as crazy as last year. Searches for homes online are flat compared to last month, but way down 15% from this time in 2023. So people are still looking, but the frenzy might be cooling off a bit. So if you're thinking about buying a house, buckle up, because prices just hit a new high. Dude, this is crazy. A new high of $397,250. That's even more expensive than ever before. If you think that's high, the median asking price just hit a record high of $414,975, which is a bigger increase than your student loan debt since graduation. So, guys, you have a lot of fear mongers out there that are saying the market is crashing, the market is crashing, the market is crashing. Well, this is Redfin's weekly data, and the data that Redfin is giving us which Redfin is one of the big big boys right that collect data online is telling us that the market is not crashing, according to prices. Now, I'm not saying that in some markets we're not seeing a major increase of inventory. We're also seeing a decrease in mortgage applications, which means that the buyer demand is low, is slowing down, but that's not impacting the actual cost and price of housing, guys. Also, the monthly mortgage payment is $2,785 at a brutal 6.87%, which is not that brutal, because when I bought my first investment property in 2007, I was paying 7.75% on a 30 year mortgage, and I was the broker. So let's put that in perspective.
Speaker 1:
The difference today, in today's market, though, is that the houses have gone up so much more significantly more than they were in 2007. So for that reason yes, it has a tremendous impact and then wages has not been able to keep up with the cost of housing. That's basically rent for a whole mansion, with the side of crushing the debt. Now, new listings are up a whopping 8.2% compared to last year, which is the biggest jump in two months. This might sound like good news, but mortgage rates are still high. It's not exactly a buying frenzy.
Speaker 1:
So now we are seeing interest rates come down. We are seeing the 10-year treasury. I'm watching this. I watch this every day, guys, we're watching. I'm seeing the 10-year treasury consistently, day by day. There's coming down slowly, but I'm seeing the rates coming down day by day, by day by day.
Speaker 1:
The number of homes actively listed for sale is up a crazy 16.9% compared to last year. I just talked about this, how inventory might be going up, but you know it's really a weird time because, even though you know the basics is a supply goes up, prices go down. We are not seeing that in the housing market and I wonder why it's really weird, even though interest rates are hot. Actively listed for sales are up 16.9 compared to last year, which is the biggest jump in months. This might sound like good news for finding a place but, like I said, mortgage rates are still pretty up there compared to prices. So it's not exactly a free for all. So stay and keep swiping through zillow and currently houses are typically on the market around 31 days. That means if you see a listing you love. Don't waste too much time. Make sure you can afford it, but take action. So here's what's up with the housing market in the bay area, californ.
Speaker 1:
California's housing market continues to soar to unprecedented heights, with home prices hitting new records, despite previous forecasts of a potential slowdown. The median home price in California surged to $813,980. $113,980. Wow In April of 2023, marking a 5.6% increase from March and a 21.8% jump from the previous year.
Speaker 1:
The escalation in prices underscores the persistent challenge faced by millennials and other prospective homebuyers in the state, where affordability remains a significant concern for my California listeners. We know I feel you. We know this has always been a problem for you In California. Affordability has always been a problem for you guys. We get this buyers in securing properties amidst a competitive environment. As a result, young adults seeking home ownership confront mounting obstacles, grappling with escalating prices that outpace income growth, thereby intensifying affordability issues across the state.
Speaker 1:
Guys, I feel your pain if you're in California. This has always been a problem for you guys, but right now it is absolutely insane this date in particular, right when we listen to commentators online, especially more on the conservative commentators. I got to say something about this. Especially on the conservative side. We hear the commentators say that California is people are leaving and California is going to crap and is going, you know, hell in a basket. Well, that's not what the data says. People are still buying. Look at these prices, look at this craziness. So if you're an investor in California and you bought post pre-COVID dude, you're doing amazing right now. And this has been your weekly real estate market update. I'll see you guys next week. Peace.
