Interestingly, when asked "Which of the following is your dream home?", 32 percent of those surveyed want a Craftsman bungalow, getting the highest number of votes. Perhaps that's not surprising when you, the audience member, look at the settings for numerous TV shows and home advertisements, i.e., "Blue Bloods" for one. Craftsman homes have lots of wood, warmth and old-fashioned craftsmanship plus a feeling of years of established family ownership in practically all cities in the U.S.
Certainly in Long Beach there are several neighborhoods in which to find one. But, what does it take to own one? From 2010, the CA median house price has risen from $305,000 to the current $476,000, and up to a projected $491,000 for 2016. The good news for buyers is that the rate of increase is slowing to a projected 3.2% increase for next year. But the other news for buyers is that, as early as December, we may receive the long awaited news about an interest rate increase--already anticipated in the financial markets. So the rates under 4% for so long are likely to be up to 4.5% next year. Sales volume is still expected to go higher, hopefully a release from the long-depressed inventory.
Using statewide medians, that 2015 median priced home at $476,000 is probably going to be about $15,000 higher, and the interest rates will be about .5% higher. Looking at principal and interest only, a mortgage payment could go from $1796.11 (20% down, SP $476,000, 3.99%) to $1990.26 per month for a 2016 $491,000 house at 4.5% interest with same assumptions.
For buyers who do not know any other market except the current very low interest one, this may seem like very foreign territory. But it's still not such a bad time to buy.
Too see the entire CAR 2016 report in pdf format, click here or see below in ScribD
1 comment:
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