Loads of houses are up for sale — but middle-class buyers are still shut out – Washington Post

Despite an uptick in homes on the market and weakening home sales across the country, home ownership is out of reach for a growing number of middle-class buyers, according to a recent report from real estate brokerage Redfin.

An analysis of U.S. homes on the market in 2017 and 2018 found that the number of affordable homes for sale has decreased in 86 percent of metro areas (of 49 included in the study), even as the number of homes on the market grew. While buyers normally benefit from better availability in competitive housing markets, it doesn’t help if the majority of available homes are priced for the wealthy.

“For the past few years, home prices have gone up faster than wages,” said Daryl Fairweather, chief economist at Redfin. “That kind of growth really isn’t sustainable. At a certain point, there won’t be enough buyers left for the homes left on the market.”

Home ownership has long been at the heart of the American dream, a means of accumulating wealth and securing financial stability. But ownership rates have fallen dramatically since the financial crisis — coming in at 64. 4 percent in the third quarter of 2018, according to data from the U.S. Census Bureau — a telling sign that the traditional markers of middle-class life are getting tougher and tougher to hang onto.

To estimate affordability, researchers used the median income in each metro area, applied standard interest rates and assumed a 20 percent down payment and a monthly mortgage payment of 30 percent or less of the buyer’s gross income. Even adjusting for 10 percent down payment, just over half of homes on the market were affordable, according to the study.

In Seattle, the share of affordable homes fell 14 percent from 2017 to 2018, leaving only 46 percent of homes within the reach of middle-class families. In San Jose, Calif., the share of affordable homes fell from 26 percent to 14 percent over the same time.

According to the National Association of Realtors, existing home sales in December were down 10.3 percent year over year, the biggest drop since the housing market bottomed in 2011. At the same time, the median home sale price was $223,900, according to Zillow’s home value index.

Current conditions mirror what happened after the housing market collapsed. Prices tumbled and property was abundant, but the only people who could afford to buy were those who hadn’t been crippled by the financial crisis. Years later, a booming economy has yet to restore buying power to middle-class families, as mortgage rates and home prices have climbed. Prices surpassed their pre-crash peak in October 2017. And according to a December report from ATTOM Data Solutions, last quarter was the nation’s worst for home affordability in over a decade.

In metro areas, part of the issue is a lack of public investment in affordable housing, Fairweather said. The problem is often exacerbated in cities that serve as hubs to major tech companies, where an influx of highly paid workers has ratcheted up prices and cost of living. It’s fueling a flight from the coasts, as increasing numbers of people move inland in search of affordability.

Some states and cities are taking steps to correct this. California’s Gov. Gavin Newsom has an ambitious plan to oversee construction of 3.5 million new housing units by 2025. In November, the Minneapolis City Council signed off on $12 million in affordable housing investments throughout the city. Private companies are even stepping up to the plate — and Microsoft announced it’s offering up $500 million to build and protect affordable housing in Seattle.

The housing market is a cornerstone of  U.S. economic output, accounting for over 12 percent of the country’s GDP in 2017.  With the economy deep into an expansion, there’s been a rise in first-time buyers, but if conditions persist, many may be priced out and forced to rent instead. 

“Now the economy is doing better and more people are looking to buy a home for the first time,” Fairweather said, “but they’ve missed the boat on affordable deals.”

I read this article at: Washington Post

Got Real Estate Questions?   The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Call | Text | Sabrina 650.799.4333 | Susan 650.796.0654

Email |   Info@TheCatonTeam.com

 

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Forget Aspen! 10 Great U.S. Ski Towns Where Folks Can Actually Afford to Buy a Home

Winter, as you’ve surely heard, is coming—hard and fast. So why not ride it out in your very own home in the mountains, in a sweet place where the slopes are groomed, the air is clean, and après-ski bars are buzzing? While you’re at it, maybe chill for the summer too! Truth be told, you don’t have to be a second-generation reality TV star, tech titan, or trust-fund kid to live large in a great American ski town. And no, we’re not schussing you. You just need to know where to set your sights.

Hint: It’s not on Aspen, Jackson, Park City, or any of the other snowy playgrounds of the 1%, where median home prices rival or even exceed the most expensive neighborhoods of San Fransisco or New York.

But there are plenty of lower-key, way more inexpensive options around. In fact, just about half of America’s ski towns, as defined by realtor.com®, have a median home price under $300,000. So our data team set out to find the most affordable of the bunch, towns where you can keep the dream of owning a home near the slopes alive, and maybe even have some cash left over for a new snowmobile. Or heck, an SUV!

While you’d be forgoing some of the glam scenes, upper-end nightspots, and world-class powder of the best-known resort towns, these lower-priced mountain meccas are still undisputed winter and summer wonderlands. Some are old mining towns, or small remote cities that built resorts as a means to replace fading industries. They have fewer tourists, and miles of untrammeled nature.

To create our rankings, we started with a list of around 450 ski resorts, as compiled by onthesnow.com, a website that creates snow reports for the ski industry. We then looked at median list prices in the nearest towns or cities to those resorts to figure out which had the least expensive real estate. Only places with at least 50 homes for sale in October were included, and for geographic diversity, we included just one place per state.

So pull on that discount Uniqlo parka, grab a hot toddy or three, and let’s check out the best bargain ski towns in America.Most affordable ski towns

 

Read More:  Realtor.com – Ski Towns

Got Real Estate Questions?   The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

The Caton Team Testimonials

The Caton Team Blog – The Real Estate Beat

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Thanks for reading – Sabrina

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina DRE# 01413526 / Susan DRE #01238225 / Team DRE# 70000218/ Office DRE #01499008

The Caton Team does not receive compensation for any posts.  Information is deemed reliable but not guaranteed. Third party information not verified

What to consider when purchasing investment properties…

Many Real Estate investors, priced out of the Bay Area but savey enough to know that Real Estate is a solid, long term investment are migrating outside the Bay for oppotunities.  The moment local buyers start seeing the homes and prices just a few hours away from here – they start to get really excited about the prospect of owning Real Estate.

It’s one thing to buy a home you plan on living in.  It’s another thing to buy a home you plan on renting out – even if the end game is moving in down the line.

Here is a short list of things to consider when buying investment property:

  • How strong is the rental market in the area I am looking in?
  • What are rents going for?
  • What have they gone for?
  • What is the forecast of the rental market?
  • Will the cost of the rent cover the mortgage, insurance and upkeep?
  • What happens when I loose a tentant?
  • Do I have enough rainy day money to cover the loss of rent and tenant percurment?
  • How much does home maintenance cost for a rental property?
  • Will I be the landlord who fixes items – or will I want a property manager?
  • Will I manage the home myself?
  • Will I find a tenant on my own?
  • Will I draft my own contracts?
  • How much does a property manager cost?
  • What services do they provide?
  • What happens when something breaks?
  • Will you go fix it?
  • Can you afford to fix?  – By the way YOU have to fix it.
  • Do you want to be a landlord?

 

The list goes on.  Bottom line, sit down and talk with a Realtor you trust.  If you don’t know one – The Caton Team would love to interview for the job.  We can help you understand the local markets and refer you to local Realtors that can help you make an educated decision.  Apps and the net are great for information but nothing beats real world experiance.

Got Questions – The Caton Team is here to help.

We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!

The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the upmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.

A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522 Office: 650-365-9200

The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?

The Caton Team Testimonials

The Caton Team Blog – The Real Estate Beat

The Caton Team Website

The Caton Team Advantage

How to Buy While Selling Real Estate

Want Real Estate Info on the Go?  Download our FREE Real Estate App:  Mobile Real Estate by The Caton Team

Visit us at:  Our Blog * TheCatonTeam.com * Facebook *Yelp Us * My Yelp * Instagram * HomeSnap* Pintrest * LinkedIN Sabrina * LinkedIN Susan

Thanks for reading – I wrote this – Sabrina

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina DRE# 01413526 / Susan DRE #01238225 / Team DRE# 70000218/ Office DRE #01499008

The Caton Team does not receive compensation for any posts.  Information is deemed reliable but not guaranteed. Third party information not verified.