California real estate market power is shifting
This week, Zillow made a limited US housing inventory and a quick price assessment. According to Zillow, the US is slowly recovering from the 2008 collapse. Now buyers are gaining more bargaining power as housing.
Zillow’s Buyer-Seller Index shows, with 20 of the top 35 US subways, market conditions prefer buyers more than a year ago. The index is based on the price of the inflows, the price of selling a house and the rate of sale price.
By comparing each subway over time, this analysis shows whether the market is cooler (in favor of buyers) or hotter (in favor of vendors) from the past. The California markets have seen the biggest change to buyers since last January, under the leadership of San Jose, where the largest swing is experienced.
San Francisco, San Diego, Los Angeles, and Denver are completing the top five markets where buyers will take more time to market than they were in the past years. Although San Jose and San Francisco are exceptionally cool, they are still the hottest markets in comparison with others in the country, where markets see very little price drop, homes are not in the market for a long time and the list sales price is higher.
Housing prices in these two Bay Area markets are so prohibitive that the typical buyer should make a reduction of over 20 percent to keep mortgage payments below 30 percent of the monthly household income. San Jose buyers need to pay a 49 percent down payment or $ 614,100 for the national media, almost three times the housing value. In San Francisco (43 percent), Los Angeles (43 percent) and San Diego (31 percent), buyers will have to reduce more than 20 percent.
“It is no surprise that the markets which pushed the bounds of affordability over the housing recovery are now experiencing significant cooling,” said Skylar Olsen, Zillow Director of Economic Research. “As down payments and mortgage payments far outpaced incomes, buyer demand eventually exhausted itself. Those buyers looking in cooling markets will likely welcome the relief, although the entry price is still high. Inventory is returning and spending more time on market, meaning their decision making can be made with a cooler head.”
Some of the hottest markets have slowed down over the past year, while others have become seller-friendly. Tending to see big fluctuations, Miami saw the biggest change in favor of vendors over the past year;
Source: World Property Journal
Melike Vodina / realesatecoulisse.com