STATE’S OWNERSHIP RATE HITS AN 8-YEAR HIGH...OR...SOUTHERN CALIFORNIA SALES PLUMMET TO 11-YEAR LOW

Are you an optimist or pessimist or realist? How you view things may decide which headline you believe is the most telling of things to come for the SoCal real estate marketplace. CoreLogic released final figures for January and that figure was 12,665 homes and condos changed hands in January 2019 — a 17.1% decline from January a year ago. These figures for Southern California from Ventura down to San Diego. However, 2018 ended with more SoCal citizens owning and living in their own homes than in the past 8 years. Low interest rates compensated for rising prices in the very best of ways, before last year saw rates rise rapidly and often, ending the year with rate hikes left buyers cold. However, if you only read the papers, you are under the impression, no doubt, that rates haven’t budged, because local columnist have been remiss to report that rates have dropped over a point. YES!! INTEREST RATES ARE BACK IN THE 4’S!! (Remember, this column never reports active rates because they can change without notice. This meant to be informational only.) In fact, 56% are owning their abodes here in the sunshine state. Yes, we are still behind many other states in that statistic. However, if you take similar metropolis areas and compare population dense areas, it will be about the same. Shame on newspapers not letting the public know that a little affordability came back with rates dropping. Many economists predict that rates will move little this first six months of2019.

WHAT ARE THE EXACT NUMBERS?

or Orange County, home sales were down 20.3% compared with the same time a year ago. For the month of January, the total number of sales was 1,778; with new homes comprising just 191 of that number, condos had 474 and resale houses totaled 1,113. For the primary ingredient of our market, the resale single-family saw prices rise just 1.5% but volume drop 14.6%. Condos fell in price 7.4% and volume 22.5%. New homes rose in price because of higher priced development releases 19%, but fell in volume, reflecting affordability issues, 39.2%. Median home payments rose to $3,503 from $3,142 a year ago. But that is median, not average. There is a house payment possibility for every buyer. Don’t be dissuaded, try to buy.

THREE GREAT TIPS FOR THOSE TRYING TO BUY

1) Automate your savings for your down payment. Don’t ask yourself every month if you want to save or how much can you put in, as something will always pull at you. Have it go to savings straight from your check. 2) build your credit history and keep it clean. Have several credit cards, use them, and pay them off every month. Stay in control and don’t get into debt. 3) Practice living on a budget. Give up lunches out and Starbucks, even if you can afford it right now. Practice living the way you would have to if you owned your dream starter or move up home. Take that money and add it to savings or for upgrades to your next home.

MILLENNIALS MAY BE TEMPTED TO RENT, BUT ACCORDING TO MILLIONAIRE DAVID BACH — DON’T...

Millionaire David Bach has a message for Millennials, don’t wait to buy. It is nearly impossible to build retirement and personal wealth without home ownership. For example, if one rents a 2 bedroom apartment for the approximate average rate of $1,800 — after 3 years a total of $64,800 will have been spent. Assuming rents aren’t risen until year 4, which is unlikely, but to be generous, let’s say at year 4 it rises to $2,000 a month, after 3 years, the Millennial has just spent another $72,000. But you spend the same or more on a house payment right? Maybe. But you also have a tax deduction, equity buildup and appreciation. When you rent, you make other people wealthy. Food for thought. See you next month.