Real Estate
CalHFA Dream For All is coming back
Does this program truly help more people become homeowners?
by Alisa Johnson, January 2024
There is a question that has swirled around for a long time in my head.
Do down payment assistance programs really help get more buyers into homes? Would those buyers have been able to purchase without the assistance?
Last year when CalHFA released $25 million in funds for the CalHFA Dream for All program the funds were gone in less than 11 days. Did these funds actually go to first-time home buyers in need? Or did they get dispersed to just about anyone who applied in those first 11 days? I am not sure we will ever know the true answer to this but the program is on its way back but this time it has some adjustments to qualifications and a more controlled way to distribute funds.
Some of the qualifications for the new program release are as follows:
- At least one applicant must be a California resident
- At least one applicant must be a First-Generation Homebuyer – **this is a new requirement added with this release
- A homebuyer who has not been on title, held an ownership interest, or has been named on a mortgage to a home (on permanent foundation and owned land) in the United States in the last 7 years, and
- To the best of the homebuyer’s knowledge whose parents (biological or adoptive) do not have any present ownership interest in a home in the United States or if deceased whose parents did not have any ownership interest at the time of death in a home in the United States, or; PB.2023-03 Page 2 of 2 California Housing Finance Agency
- An individual who has at any time been placed in foster care or institutional care (type of out-of-home residential care for large groups of children by non-related caregivers)
- Income must be less than or equal to $178,000 in Nevada County, or $180,000 in Placer County
- Maximum Shared Appreciation Loan amount is $150,000 or $20% of the sales price or appraised value, whichever is less. – Shared appreciation loan can be used for down payment and closing expenses!
- Minimum Combined Loan-To-Value (CLTV) is 95.00%
- 2/1, 1/1, and 1/0 temporary buydowns are permitted
These programs are created with the vision in mind to help more people become homeowners.
The 1st $25 million(2023) did not have the same requirements and I fear that a lot of those funds helped people purchase homes with those funds that had other means to afford home ownership.
So will 2024 be a better use of CalHFA Dream for all funds?
I believe so. If you are paying rent and spending over $2500 a month in rent then home ownership might be a great option for you and down payment assistance might be a great boost to get you there.
Homeownership is costly and you should be prepared as it is likely the largest investment you will make in your lifetime.
Some things that you can start now to prepare to be a homeowner are as follows.
Budgeting-Create a household budget.
Savings-Create a savings plan to have 6 mortgage payments in savings for emergencies.
Research– Gather information from your RE agent, lender, etc on costs you will incur in the buying process.
Homeownership is the best investment you can make so get educated, be prepared, and look into all options that will support you becoming a homeowner.
Real Estate
CALIFORNIA ASSOCIATION OF REALTORS WEEKLY MARKET MINUTE
August 22, 2022 – Housing sentiment continued to sink for both the supply side and the demand side as market’s buying
conditions remained sour.
Not only did homebuilders scale back in production as suggested by the dip in building permits, but potential homebuyers have also hit the brake hard as market uncertainty and high costs of borrowing lingered on. Closed sales for existing single-family homes have taken a beating as the market has shifted in response to the recent surge in interest rates, while pending sales suggested that the market could remain soft in August.
The pace of sales declines is expected to decelerate in the coming months, however, as rates continue to stabilize, market volatility begins to subside and supply conditions further normalize.
A bounce back in California’s employment situation, was perhaps the silver lining in last week’s news, as it hints on an economy that could remain resilient in the third quarter, despite a back-to-back decline in GDP in the first and second quarter of the year.
Rising interest rates and affordability crunch drag down July home sales and prices: Housing demand in California cooled further in July as the effects of rising interest rates and high home prices hit would-be homebuyers, dragging home sales below the annualized 300,000 benchmark level for the first time since May 2020. Existing single-family home sales totaled 295,460 in July on a seasonal adjusted annualized rate, down 14.4% from June and 31.1% from July of last year. The statewide median home price was $833,910, down 3.5% from June and up 2.8% from July 2021.
While high home prices and rising interest rates depressed housing affordability and in turn dampened demand in the midst of the peak home-buying season, buying opportunities remain in the coming months for those who have been waiting on the sideline as more listings become available, competition continues to cool off and rates begin to stabilize.
Homebuilders’ sentiment turns negative: According to the National Association of Home Builders/Wells Fargo Housing Market Index, homebuilders have become more pessimistic as their sentiment towards the housing market dropped another 6 points in August to 49. This marked the eight straight decline in the index and the first time it dipped below 50 since June 2014, excluding a very brief plunge at the start of the Pandemic. Of its three components, current sales conditions saw the largest drop by 7 points, though sales expectations in the next six months and buyer traffic also declined by 2 and 5 points, respectively. Homebuilders’ confidence has deteriorated as buyer demand continued to be diminished by affordability constraints.
Despite higher costs for land, labor, and buildering materials, about 1 in 5 builders in August reported lowering prices by about 5% in the past month in an effort to increase sales or limit cancellations.
Housing starts decline sharply in July as building material prices rise and demand for housing softens: Higher mortgage rates upend residential construction in July with total housing starts falling 9.6% from June and 8.1% from July of last year. Single-family starts declined 10.1%, and while upward revision to starts during June helped take some sting out of July’s sharp decline, single-family starts have now declined for five consecutive months. The pull-back was attributed primarily to higher mortgage rates, which have significantly worsened affordability and caused buyers to hold off on their housing demand.
With building permits declining 1.3% in the latest report, starts will likely fall further in the upcoming months.
California employment improves as hiring rebounds in July:
After a bit of a slump this spring, hiring perked back up in July. California’s employers added a nation’s best 84,800 jobs in July, marking the largest gain since February.
The job gains were broad based but the resurgence in hiring appears to have been driven by a rebound in tech hiring. The state’s unemployment rate dipped to the new low, dropping 0.3% to 3.9% – the lowest level since 1976. While this rebound in hiring is good news for California’s economy, it is also becoming more evident that the labor market is cooling off as job openings fell 212,000 in June. California’s 15.7% drop was by far the largest of any state and brought job openings back down to the lowest level since August of last year.
Don’t hesitate to call The Sierra Lifestyle Team for free evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871.
Real Estate
Realtor.com® Listapalooza – the best time to list – is now a national holiday, according to National Day Archives
SANTA CLARA, Calif., April 6, 2022 /PRNewswire/ — As the final countdown begins to Realtor.com® Listapalooza (April 10-16), a new national holiday, the company today released survey data that shows homeowners are gearing up to sell this Spring and Summer.
According to the report, 64% of prospective 2022 sellers anticipate doing so within the next six months, and with high expectations for making a profit.
Still, the potential uptick in newly-listed homes indicates some much-needed relief could be on the horizon for buyers – especially first-timers. Today’s sellers expect to ask for relatively affordable prices and include a higher share of millennials than last Spring, suggesting that more Americans plan to upgrade from their starter homes.
National-Realtor-com-Listapalooza-Week-2022
The Realtor.com® survey of 3,000 consumers, which was conducted online by HarrisX in February 2022, also asked about the experiences of recent sellers, who said determining the right time to list was the longest stage of the process.
“Our survey data illustrates the importance of helping empower homeowners to take control of the listing process, by providing information about market conditions, prices and seasonal trends, like the best dates to list your home. While sellers are expected to hold the upper hand in 2022, navigating the listing process remains a challenge – particularly for those also buying in today’s fast-paced market,” said George Ratiu, Senior Economist & Manager of Economic Research at Realtor.com®. “Homeowners who are ready to move forward with pandemic-delayed plans will find plenty of opportunity this Spring and Summer. Although accelerating inflation is leading to higher housing costs and living expenses, many buyers remain interested in finding a home. At the same time, recent housing trends suggest demand is beginning to moderate as higher mortgage rates push monthly payments out of some buyers’ budgets, underscoring the long-term need for more affordable inventory.”
Homeowners are ready to take advantage of the Spring and Summer buying seasons
Survey data suggests some relief is on the horizon for Americans grappling with one of the worst housing shortages of all-time. Almost two-thirds (64%) of prospective 2022 sellers anticipate listing a home within the next six months. Whether these sellers follow-through with their plans will be key to the forecasted 2022 inventory recovery and critical for buyers hoping to find a home before mortgage rates climb even further. In a positive sign that homeowners are serious about listing, many sellers are already getting their home ready. However, they’re doing so with great expectations of the current market, which means buyers should prepare for sellers asking for high offer prices, quick closes, waived contingencies and more.
- The majority of 2022 prospective sellers plan to list within the next six months, with 9% already listed and the remaining getting ready to list within the next 30 days (11%), 1-3 months (24%) or 4-6 months (20%).
- Compared to those who planned to list last Spring, this year’s prospective sellers have higher expectations of the hot housing market, including asking for more than their home is worth (42% vs. 29%) and refusing to pay for repairs or improvements (28% vs. 24%).
- When asked why they’re planning to list in 2022, surveyed sellers’ top reason was wanting to profit off the current market, tied with their home no longer meeting their families needs (each at 31%).
- Homeowners’ motivating factors behind moving also reflect the impact of pandemic trends, such as wanting different features after spending so much time at home (15%) and no longer needing to live near their office (14%).
Millennials are moving on up, signaling more starter homes for first-time buyers
With the oldest millennials already 40-years-old, these homeowners are playing an important role in adding to the supply of starter homes. Millennials represent nearly half (49%) of sellers who plan to list within the next six months and many anticipate selling at relatively affordable prices. This is welcome news for first-time buyers, who face fierce competition for limited available starter homes. Combined with rising affordability issues as home prices and mortgage rates climb, survey data offers some hope for first-time buyers, based on:
- More millennials plan to list within the next six months than in March 2021 (75% vs. 66%), and account for a higher share of all 2022 prospective sellers (42.0% vs. 26.0%).
- In a further sign that older millennials are moving on up from their starter homes, the share of surveyed millennials who have sold a home before was nearly as high as the overall rate (61% vs. 64%).
- Millennials have plenty of financial motivation to stick to their plans, with top reasons for selling reflecting the pressures of rising inflation and economic uncertainties. Compared to all survey respondents, higher shares of Gen Y sellers want a more affordable home (34% vs. 21%) and need the sale money ASAP (14% vs. 11%).
- In a potential sign of more starter homes coming onto the market, the majority of 2022 prospective sellers expect to list in relatively affordable price ranges: $350,000 or less (43%) and $351,000-$500,000 (22%).
Recent experiences highlight the importance of preparation, even in a seller’s market
The COVID housing market has largely favored sellers and many who recently sold were able to take advantage of bidding wars, fast closings, waived contingencies, inspections and appraisals, and more. At the same time, sellers’ experiences highlight the importance of preparation, especially as buyer demand is beginning to moderate. Even among recent sellers who found success, the majority took steps to get their home ready to list, such as making repairs, cleaning and decluttering. Additionally, although many sellers were able to list quickly, 41% said the process took longer than they originally anticipated.
- Over half (53%) of sellers spent less than a month preparing their home for listing, while another 26% said the process took 1-3 months.
- Forty-one percent of recent sellers said getting their home ready to list took longer than they expected. Determining the right time to enter the market took longer than any step of the home prep process, with 38% of respondents reporting that this decision took more than 3 months.
- Among steps successful sellers took to prepare their home for listing, top responses included repairs and updates (59%) and cleaning and decluttering (67%). While minor cosmetic updates were the top repair sellers made before listing, at 53% of respondents, nearly as many fully repainted interiors and replaced flooring (47% each).
- The majority (80%) of recent sellers sold at or above their asking price. Other top benefits of the competitive market included: buyers forgoing repair concessions (28%), offers within a week (27%), and waived contingencies like inspections (25%).
Methodology
This Realtor.com® survey was conducted online within the United States from February 16-18, 2022 among 3,000 adults in the United States by HarrisX. The sampling margin of error of this poll is plus or minus 1.8 percentage points. The results reflect a nationally representative sample of U.S. adults. Results were weighted for age by gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population.
About Realtor.com®
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com®pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
SOURCE Realtor.com
Real Estate
January 14, 2022
Inflation continues to press on mortgage rates. The 30-year fixed-rate mortgage averaged 3.45% this week, up from last week’s 3.22% average, Freddie Mac reports.
“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. “This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future.”
Despite rising mortgage rates, owning a home remains more affordable than renting, the National Association of REALTORS® reports. The monthly mortgage for owning a median-priced home is $1,260 compared to the average rent of $1,540, NAR notes on its Economists’ Outlook blog.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 13:
- 30-year fixed-rate mortgages: averaged 3.45%, with an average 0.7 points, rising from last week’s 3.22% average. Last year at this time, 30-year rates averaged 2.79%.
- 15-year fixed-rate mortgages: averaged 2.62, with an average 0.7 points, increasing from last week’s 2.43% average. A year ago, 15-year rates averaged 2.23%.
- 5-year hybrid adjustable-rate mortgages: averaged 2.57%, with an average 0.3 points, rising from last week’s 2.41% average. A year ago, 5-year ARMs averaged 3.12%.
Freddie Mac reports average points along with commitment rates to better reflect the total upfront cost of obtaining the mortgage.
Market Observations, January 2022
Market Update, Nevada County 
| | December 2021 is a Seller’s market*
Home For Sale in December 2021: 164 units.| • | Down 26.8% compared to last month | | • | Down 16.3% compared to last year |
Home Closed in December 2021: 116 units.
| • | Down 4.9% compared to last month | | • | Down 26.6% compared to last year |
Home Placed under Contract in December 2021: 104 units.
| • | Down 23.5% compared to last month | | • | Down 10.3% compared to last year |
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
| | December 2021 Average Sold Price per Square Footage is Neutral*
Average Sold Price per Square Footage in December 2021: $298 | • | Down 5.4% compared to last month | | • | Up 10% compared to last year |
*Based on 6 month trend – Appreciating/Depreciating/Neutral
December 2021 Average Continuous Days on Market trend Remains Steady*
Continuous Days on Market in December 2021:28 | • | Down 24.3% compared to last month | | • | Down 42.9% compared to last year |
December 2021 Sold/Original List Price Ratio is Falling*
Sold/Original List Price % in December 2021:96% | • | 0% compared to last month | | • | Down 1% compared to last year |
*Based on 6 month trend – Rising/Falling/Remains Steady
December 2021 Average For Sale Price is Appreciating*
Average For Sale Price (in thousand) in December 2021: $772
| • | Up 0.5% compared to last month | | • | Up 1.6% compared to last year |
December 2021 Average Sold Price is Depreciating*
Average Sold Price (in thousand) in December 2021:$558
| • | Down 15.2% compared to last month | | • | Down 4.5% compared to last year |
*Based on 6 month trend – Appreciating/Depreciating/Neutral
December 2021 is a Seller’s market*
Months of Inventory based on Closed Sales in December 2021: 1.4 | • | Down 21.8% compared to last month | | • | Up 16.1% compared to last year |
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
Don’t hesitate to call The Sierra Lifestyle Team for evaluations of your home’s value or to tour homes on the market you have an interest in. We are here for you, and Alisa (almost) always answers her cell phone, 530-559-4871. |
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![Home Insurance in Nevada County]()
Real Estate
CA homeowners insurance has been in a state of crisis since the Camp Fire destroyed the entire town of Paradise, CA in November of 2018.
Some homeowners in Nevada County have faced yearly non-renewals and/or significant rate hikes year after year. One of the most frustrating aspects for homeowners has been the big red ‘X’ designating entire zip codes as high fire risk regardless of mitigating factors taken by responsible homeowners. Those homeowners who have cleared their property, installed sprinklers, and added fire-retardant roofing have seen no improvement in their acceptability to insurers nor to their policy rate with the last resort insurance offered by the CA FAIR Plan. The difficult to swallow news is that the CA FAIR Plan filed for a 48% rate increase with the CA Department of Insurance in 2021 with new rates anticipated for February 2022. The rate increases won’t be an ‘across the board’ percentage. Some homeowners will experience only a slight increase in rate, while others could see dramatic increases as much as 130%.
Rate will now be determined using a new AI system that better identifies wildfire risk to specific structures.
Although that may sound bleak, it is potentially very good news for Nevada County. The new AI developed by the tech company Zesty.ai is a scoring model known as Z-FIRE. Z-FIRE uses property specific factors which influence wildfire risk, rather than blanket decisions based only on map lines. This means that homeowners will have the power to affect their wildfire risk and therefore the policy or rate they receive. Z-FIRE employs over 15 data sources including aerial imagery, local weather data, building materials, slope, and brush clearance. Farmers Insurance has predicted the ability to add 30,000 new policies in California based on the new system.
With the openness of insurance companies to the use of new technology, which takes into account the diligent efforts of homeowners, this could be good news for Nevada County.
Kimberly Moore
“I chose to enter the real estate market after spending several years helping
Nevada County residents obtain home construction financing and homeowners insurance. I have a passion for helping people with all aspects of their housing needs. As a former loan officer, insurance agent, and teacher, I am particularly well-equipped to guide homebuyers through the complexities of purchasing and selling homes. I also specialize in home decor and remodeling; I love assisting homeowners with getting the most return possible on their investment and homebuyers to find and establish a dwelling perfectly suited to their needs and preferences.”
