Here's Your Roundup Of Recent Major News Affecting California Real Estate, Housing, And Mortgages.
Here's your roundup of recent major news affecting California real estate, housing, and mortgages.
Utopian City Is Starting to Reveal Itself
CALIFORNIA - 300 parcels of land in Solano County have been purchased since 2018. Dozens of parcels are now bordering three sides of Travis Air Force Base. Billionaire tech entrepreneurs have chosen this place and are planning to build their own city from the ground up.
The project is 50,000 acres of agricultural land about 800 miles northeast of San Francisco. The land has cost $800 million. The project has become controversial, water is a big issue as well as being so close to Tavis Air Force Base, just to name a few.
REAL ESTATE - Median home price in Los Angeles nears $1million. In the last five years, the median listed price in the Los Angeles area has increased more than 30%. As of late July, the median price for homes in the Los Angeles metro area was $992,300.
For home buyers and renters alike part of the solution is to build affordable housing. Several SoCal cities are very close behind Los Angeles. San Diego, San Luis Obispo, and Oxnard are over $900,000 and have also seen tremendous growth in the last five years.
MORTGAGE - The pros and cons of adjustable-rate mortgages. With rising mortgages rates, costs that come with owning property and insurance premiums rising, many property owners must look at ways to get the cost of funds down. Adjustable mortgage rates can be a good option for property owners. Here are some pros and cons to consider:
The Pros of Adjustable-Rate Mortgages:
Lower Initial Payments: ARMs often provide lower initial interest rates, resulting in more manageable monthly payments during the fixed period. This can improve cash flow and allow for greater contributions towards the principal balance.
Flexibility for Short-Term Homeowners: If you plan to move within a relatively short timeframe, an ARM may be a suitable choice. This is particularly true for first-time homeowners or those with plans to upgrade in the near future, minimizing exposure to interest rate fluctuations.
Budgetary Flexibility: Lower monthly payments can free up funds for other financial goals, providing greater flexibility in managing your budget.
Ideal for Short-Term Residency: If you anticipate residing in your new home for less than five years, an ARM can often offer the best interest rates and financial benefits.
The Cons of an Adjustable-Rate Mortgage:
Risk of Rising Interest Rates: The primary drawback of an ARM is the inherent risk of increasing interest rates. This means that monthly payments are likely to rise over time, potentially straining your budget.
Uncertainty and Anxiety: The variability of an ARM can cause anxiety for some buyers who prefer the predictability offered by fixed-rate mortgages.
Potential Resale Challenges: If you intend to sell your home within a short time frame and cannot do so before the rate adjustment, it may be necessary to consider refinancing to a fixed-rate loan or a new adjustable-rate mortgage.