As you may have heard (from reading this newsletter), housing inventory is getting short just about everywhere, and especially in Santa Clara County. January continued to see reduced stock, shorter times on the market, and higher median sales prices compared to one year ago. Things are a little more chill on the condo side of the market than with houses, but not by much.
According to Freddie Mac, the average rate on a 30-year fixed mortgage hit 3.92% this week, a height that hasn’t been seen since May 2019. That’s up more than a full point from 2.81% one year ago. This means a rough housing market is about to get even rougher, as many first-time homebuyers have to fend off competition and negotiate a loan that doesn’t put them in debt for the rest of their lives. Learn more from the New York Times.
According to a California Association of Realtors market report, people are staying in their homes longer than they used to. Why? Well, among the benefits of longtime homeownership in the Golden State are Proposition 13 protections against property tax hikes. Not to mention you’d have to move out of state to afford a new home!
Last year, the Union of Concerned Scientists issued a report called Underwater: Rising Seas, Chronic Floods, and the Implications for U.S. Coastal Real Estate. Under their worst-case scenario, rising global temperatures and loss of polar ice sheets will result in 1.8 feet of average sea level rise by the year 2045. That puts around 300,000 homes in the United States at risk. At this point, it’s no longer about prevention. It’s about stemming the tide. Read the report here.
Soaring housing prices, rising interest rates, and low property taxes. All of this and more are giving long-time homeowners reasons to stay put.
