{"id":2050935,"date":"2023-09-30T15:14:02","date_gmt":"2023-09-30T19:14:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-housing-affordability-expected-to-remain-flat-at-17-percent-report\/"},"modified":"2023-09-30T15:15:57","modified_gmt":"2023-09-30T19:15:57","slug":"california-housing-affordability-expected-to-remain-flat-at-17-percent-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-housing-affordability-expected-to-remain-flat-at-17-percent-report\/","title":{"rendered":"California housing affordability to stay at 17%: Report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornia-housing-affordability-expected-to-remain-flat-at-17-percent-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2050935&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<div class=\"my-5\">\n<blockquote>\n<p>Housing prices are set to rise in \u200b2024 and interest rates will slightly \u200cdecrease, but unfortunately, more than\u2064 80\u200b percent of Californians will still struggle\u200d to afford a home, according to a \u200crecently released <a href=\"https:\/\/www.car.org\/en\/aboutus\/mediacenter\/newsreleases\/2023-News-Releases\/2024housingforecast\" target=\"_blank\" rel=\"noopener\">report<\/a> \u2064 from the California Association\u200c of Realtors.<\/p>\n<\/blockquote><\/div>\n<p>The report predicts \u200dthat the number of\u2064 homes sold annually\u200c will increase by nearly\u200c 23 percent to around 327,000, although this is still below the historical average of over 400,000.<\/p>\n<p>&#8220;It&#8217;s definitely an improvement, but we still have a long\u2064 way to \u2062go to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/goldman-sachs-downgrades-economic-growth-forecast\/\" title=\"Goldman Sachs Downgrades Economic Growth Forecast\">reach pre-pandemic levels<\/a>. Compared to previous\u2063 years, it&#8217;s still relatively low,&#8221; said Oscar Wei, deputy chief\u200c economist for the California Association of \u2063Realtors, in an interview\u2063 with The Epoch Times on\u2062 Sept. 27. &#8220;The economy is performing \u2064better than expected, but that also means inflation is \u2062higher than expected. Core inflation remains quite high.&#8221;<\/p>\n<div class=\"shortcode\">\n    <!--$--><\/p>\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/california-may-expedite-housing-project-approval-in-coastal-cities-fire-zones-with-new-bill-5492541?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>California May Expedite Housing Project Approval in\u2063 Coastal Cities, Fire Zones With New Bill<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/15\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/california-may-expedite-housing-project-approval-in-coastal-cities-fire-zones-with-new-bill-5492541?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/california-spending-239-million-for-5400-climate-friendly-houses-transportation-5485812?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>California Spending $239 \u2062Million for 5,400 Climate-Friendly Houses, Transportation<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/4\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/california-spending-239-million-for-5400-climate-friendly-houses-transportation-5485812?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!--\/$-->\n  <\/div>\n<p>Housing affordability,\u2063 which measures the\u200d percentage of households \u2062able to afford a median-priced home,\u2063 has significantly\u2062 declined in recent years. \u200bIt dropped from around 30 percent \u200din 2017 to 19 percent in 2021, and \u2062further decreased to 17 percent in 2023, \u200cwhere\u2064 it is expected to remain for \u2063the \u200bnext year.<\/p>\n<p>Experts \u200cbelieve that it will take several years to restore affordability to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/australia-expects-unemployment-rate-to-rise-as-global-economy-slows\/\" title=\"Australia anticipates higher unemployment rates due to the global economic slowdown.\">pre-pandemic\u200c levels<\/a>, and this \u200dcan\u2064 only be \u2063achieved\u200b if wages keep\u2063 up with inflation or if more \u200chousing is built to increase supply.<\/p>\n<p>&#8220;It&#8217;s somewhat wishful thinking because historically, wage\u200b growth has not kept pace \u200bwith inflation,&#8221; Mr. Wei explained. &#8220;If we have more housing and increased supply, it will help address the issue.&#8221;<\/p>\n<div class=\"shortcode post-related-videos\">\n    <!--$--><\/p>\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<p>    <!--\/$-->\n  <\/div>\n<p>With\u200b gas prices \u200dsoaring across the state and food and grocery prices up by\u2062 30 percent compared to last year, consumers are feeling\u2064 the impact of inflationary pressures.<\/p>\n<p>The Federal Reserve recently paused interest \u2064rates but did not\u200d rule out\u2064 future increases. This suggests that rates may \u2064not be \u2062cut as quickly as previously anticipated.<\/p>\n<p>Higher interest rates are contributing\u200c to the housing \u200csupply issue, as \u200dhomeowners who purchased when rates were around 3 percent are hesitant to sell and take on a\u200c new mortgage at today&#8217;s higher \u2064rates, which are hovering near 8\u2063 percent.<\/p>\n<div class=\"post-figure\">\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>Newly\u200b built apartments await residents in Anaheim, Calif.,\u2064 on Jan. 8, 2021. (John \u200cFredricks\/The Epoch Times)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>Experts emphasize \u2064that interest rates need to decrease in order to boost housing supply.<\/p>\n<p>&#8220;We do expect rates to go down, but the decline won&#8217;t be very \u200crapid,&#8221; Mr. \u200bWei stated.\u200b &#8220;Lower mortgage rates will stimulate sales, but \u200dat\u200c the same time,\u200d prices will continue to rise.&#8221;<\/p>\n<p>While \u200dinterest rates are projected to fall below 7 percent, possibly even below\u2063 6 percent, in \u20622024, the report predicts that California&#8217;s median home prices\u200c will\u200c increase by approximately 6 percent\u200d to over $860,000. Supply is\u200c expected to\u2063 increase by 10 to 20 percent.<\/p>\n<p>&#8220;We will see some increase\u2063 in supply, but not \u200bas much as we had hoped. It will help alleviate\u200c the supply\u200c issue, but\u2063 even with a slight increase, the housing market \u200cwill\u200b still be extremely tight,&#8221; Mr. Wei explained. &#8220;Due to the limited supply, there\u2063 will \u2064continue \u2062to be upward pressure on prices.&#8221;<\/p>\n<p>The calculations in the report are based on the expectation that interest\u200d rates\u2064 and\u200d core inflation will both decrease in 2024. Some experts anticipate a change\u2063 in federal monetary\u200c policy\u200b that could benefit the housing market.<\/p>\n<p>&#8220;With \u200dthe economy expected to weaken\u2062 in 2024, the Federal Reserve \u2064Bank will begin to loosen its monetary policy next year. Mortgage rates will gradually decline throughout 2024, and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-housing-affordability-expected-to-remain-flat-at-17-percent-report\/\" title=\"California housing affordability to stay at 17%: Report\">average 30-year \u2063fixed rate mortgage<\/a> could \u200dreach the mid-5% range\u200d by the end \u2062of next year,&#8221; said Jordan Levine,\u200c senior\u200d vice president and chief economist for the\u2062 California Realtors Association \u200cin \u200cthe\u200c report. &#8220;Buyers will have more financial flexibility to purchase homes at higher \u200dprices, which could\u2064 generate increased housing demand and result in more upward pressure on \u2062home prices.&#8221;<\/p>\n<p>Some realtors are optimistic about\u200d a healthier \u200chousing market in\u2064 California next year, as the cost\u2062 of financing homes decreases and more buyers and \u200dsellers participate in \u200cthe market.<\/p>\n<p>&#8220;2024 will be a \u200cbetter year for the \u200bCalifornia housing market for both\u2064 buyers and sellers as mortgage interest rates are expected\u200d to \u200bdecline next year,&#8221; said Jennifer \u2063Branchini, president of \u2063the association\u2063 and a Bay \u2063Area realtor. \u2062&#8221;First-time buyers who were previously unable to compete in the highly competitive\u200b market will strive to\u2063 achieve their \u200dAmerican dream \u200dnext year. Repeat buyers who were \u2063hesitant to \u2062enter the market due to high rates\u2062 will also return as mortgage \u2062rates begin to trend down.&#8221;<\/p>\n<\/div>\n<p> <\/p>\n<h2>Instability further \u200dstrained households&#8217; ability to pay for housing. This has led to debates and discussions surrounding the effectiveness of policies and programs aimed at addressing housing affordability, such as \u200cthe Property \u200cAssessed\u200b Clean Energy (PACE) program. PACE allows homeowners\u2063 to finance energy-efficient improvements through a special\u2064 assessment on their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/rep-jeffries-pays-250-in-property-taxes-on-brooklyn-condo-due-to-generous-tax-break\/\" title=\"Rep. Jeffries Pays 0 in Property Taxes on Brooklyn Condo Due to Generous Tax Break\u00a0\">property tax bill<\/a>, making it easier for them to invest in sustainable upgrades without upfront costs. However, there are\u2062 concerns about \u200dwhether\u200d PACE is truly benefiting the majority of Californians facing housing affordability challenges. To explore this \u200dissue further, here are three\u200d related questions:<\/h2>\n<p><span>  Crease by \u200c5.1 \u2062percent to\u200c $725,000. This means that \u2064even with lower interest rates,\u2064 the affordability gap will\u200d persist\u2063 for\u2064 the majority of Californians.<\/p>\n<p>The issue \u200dof housing affordability has been a pressing concern in California for several years. The high demand for housing, coupled with limited\u200d supply, has driven up prices and made it increasingly difficult for residents to afford a \u200bhome. The COVID-19 pandemic exacerbated \u2064this problem,\u200d as job losses and economic<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing prices in 2024 are predicted to increase, with slightly lower interest rates. However, over 80% of Californians will still struggle to afford homes, as per a recent report by the California Association of Realtors. The report also forecasts a nearly 23% rise in annual home sales, reaching around 327,000.<\/p>\n","protected":false},"author":1905,"featured_media":2050936,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2050935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1905"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2050935"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2050936"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2050935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2050935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2050935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}