Many homeowners happy where they are, not looking to move
By Ron Trujilloemail@example.com
Fewer California homeowners are planning to move during the third quarter, likely because of the lack of available homes on the market, higher mortgage rates or record-high home prices — or a combination of all three, according to ATTOM Data Solutions.
Silicon Valley homeowners are the least likely to look for a new home in the state, with a Pre-Mover Housing Index of 37, one of the lowest rates in the nation, according to the quarterly report. ATTOM’s Pre-Mover Housing Index acts like a barometer of regional housing markets, with a rating of 100 or more is an indicator that homeowners are more likely to move within the next 90 days.
It’s an excellent though far from perfect tool for real estate agents and those considering to move. San Francisco had the second-lowest rate at 49, followed by Santa Rosa-Petaluma at 57.
Several factors dominate in these markets — few homes are on the market, so potential home-shoppers may hold off and wait. In addition, the three regions have record-high home prices, and fewer consumers may be able to afford the sky-high prices. And, of course, consumers are enjoying a booming economy, a fast-growing job market and hefty pay increases — in some cases with double-digit gains.
So, why move?
Central Valley homeowner more likely to hit the road
But, if you head inland, the decades-old challenges of the Central Valley — think Bakersfield to Modesto — has more homeowners looking to move. Bakersfield has a Pre-Mover Housing Index of 122, the highest rate in the state. Fresno (113) and Modesto (105) are the only other cities where homeowners are planning to move more than the national average.
“A higher pre-mover index bodes well for local real estate agents, home-improvement stores, moving companies and others that benefit from the halo effect of a home sale,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile markets with a low pre-mover index likely have a scarcity of inventory available to buy or relatively weak demand from prospective buyers — or some combination of both — which is not optimal for businesses that rely on the same halo effect.”
Feature photo of Los Angeles cottage by Divanova/Shutterstock
Westwood priciest ZIP for renters
Yeah, the Bay Area and Los Angeles are expensive regions for renters. But, just be glad you don’t live in Manhattan.
The City that Never Sleeps likely causes a lot of sleepless nights for renters, with eight of the 10 most-expensive ZIP codes in Manhattan, including $5,657 per month for those in the 10282 ZIP, according to RENTCafe.
Only two California ZIP codes were in the top 10 most-expensive in the U.S, including third-place for $4,883 for Los Angeles’ Westwood Village neighborhood and $4,666 for the East Cut/Rincon Hill neighborhood in San Francisco, the sixth-priciest ZIP in the nation.
California has 18 of the 50 most-expensive ZIP codes, all in the Bay Area or Los Angeles region.
Photo of Foster City apartment community by Sundry Photography/Shutterstock
San Jose high-end prices soar despite federal tax reform
San Jose had the eighth-largest increase for luxury home prices in the nation during the second quarter, according to Redfin.
The city’s high-end home prices — the top 5% of transactions from April through June — climbed 20.8% to $2.58 million compared to a year ago. San Jose was the only one to crack the closely watched luxury home list in the state.
Housing experts are concerned that high-tax states — such as California, New Jersey and New York — could have more higher-income families leaving for states with lower local income and property taxes such as Florida, Nevada and Washington.
The top seven luxury markets were in these states during the second quarter, including a head-turning 85.3% price increase in West Palm Beach, Fla.
California had three of the fastest-selling luxury housing markets, with Oakland homes finding buyers in an average of 17 days, followed by San Jose at 19 days and San Francisco at 29 days.
Basically, high-end homes — those fetching in the range of $2 million or more — are selling almost at the same pace as the overall market, according to Redfin.
Photo of San Jose subdivision by PBK-PG/Shutterstock