Wednesday, December 27, 2017
Wednesday, December 20, 2017
Income needed to afford an Orange County home now at $154,120 a year
Source: Orange County Register
Unless you have a huge bank account, you need to earn $154,120 a year to afford the median-priced Orange County house, the California Association of Realtors® reported Monday, May 15. Just 21 percent of Orange County households met that benchmark during the first quarter of 2017, the period covered in CAR’s latest affordability report. Home prices were slightly more affordable in Los Angeles County. Minimum annual earnings needed to afford the median-priced house there was $99,830 during the first quarter of the year – just shy of a six-figure income. The region’s most affordable housing remains in the Inland Empire. You need an annual income of $75,000 to afford the median-priced house in Riverside County and $52,790 for the median-priced house in San Bernardino County.
Unless you have a huge bank account, you need to earn $154,120 a year to afford the median-priced Orange County house, the California Association of Realtors® reported Monday, May 15. Just 21 percent of Orange County households met that benchmark during the first quarter of 2017, the period covered in CAR’s latest affordability report. Home prices were slightly more affordable in Los Angeles County. Minimum annual earnings needed to afford the median-priced house there was $99,830 during the first quarter of the year – just shy of a six-figure income. The region’s most affordable housing remains in the Inland Empire. You need an annual income of $75,000 to afford the median-priced house in Riverside County and $52,790 for the median-priced house in San Bernardino County.
Wednesday, December 13, 2017
Student debt prompts millennials to move back home
Source: USA Today
Twenty-six percent of millennial college students say they plan to move back home as soon as they earn their degree in order to pay off some of their student loans, according to TD Ameritrade's Young Money Survey of about 2,000 young adults. Thirty-two percent of millennials between the ages of 20 and 26 say they owe between $10,000 and $50,000 in student loans. The average student loan balance was $10,205. That is prompting more graduates to move back home with their parents to curb costs. Nearly half of the post-college millennials surveyed say they had "moved back to my parents' home after college." About one-fourth of those who are still in college say they expect to move back with their parents following graduation.
Twenty-six percent of millennial college students say they plan to move back home as soon as they earn their degree in order to pay off some of their student loans, according to TD Ameritrade's Young Money Survey of about 2,000 young adults. Thirty-two percent of millennials between the ages of 20 and 26 say they owe between $10,000 and $50,000 in student loans. The average student loan balance was $10,205. That is prompting more graduates to move back home with their parents to curb costs. Nearly half of the post-college millennials surveyed say they had "moved back to my parents' home after college." About one-fourth of those who are still in college say they expect to move back with their parents following graduation.
Wednesday, December 6, 2017
Real estate’s new normal: Homeowners staying put
Source: New York Times
The median amount of time homeowners live in their home rose to about eight and a half years in 2016, the longest tenure since Moody's Analytics and First American Financial Corporation began tracking such data in 2000. Mortgage rates may be the reason owners refuse to move, which is keeping inventory stubbornly low. And economists predict homeowners will continue to lengthen their stay in a home through the next decade. Many homeowners refinanced their mortgages in recent years when interest rates were at historic lows—around 3.25 percent for a 30-year fixed-rate mortgage. Now that interest rates have increased, mortgage payments would jump significantly for homeowners, even if they find a similar home for the same price. For example, a $500,000 30-year fixed-rate mortgage for $500,000 with an interest rate of 5.5 percent would increase a monthly payment from $700 to $3,600, including estimated taxes and fees.
The median amount of time homeowners live in their home rose to about eight and a half years in 2016, the longest tenure since Moody's Analytics and First American Financial Corporation began tracking such data in 2000. Mortgage rates may be the reason owners refuse to move, which is keeping inventory stubbornly low. And economists predict homeowners will continue to lengthen their stay in a home through the next decade. Many homeowners refinanced their mortgages in recent years when interest rates were at historic lows—around 3.25 percent for a 30-year fixed-rate mortgage. Now that interest rates have increased, mortgage payments would jump significantly for homeowners, even if they find a similar home for the same price. For example, a $500,000 30-year fixed-rate mortgage for $500,000 with an interest rate of 5.5 percent would increase a monthly payment from $700 to $3,600, including estimated taxes and fees.
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