Good afternoon Bay Area! Hey, I’m Tony Leong, one of the executive producers here at NBC Bay Area and I’ve been tracking all of the housing stories you need to know about this week. Let’s get started.
Would-be homebuyers are getting hit twice. Interest rates are soaring and it is getting harder to qualify for a loan. The average rate for a 30-year fixed mortgage is now more than 7%. And mortgage credit availability is at the lowest level since March 2013. Lenders are worried about a possible recession, leading to more homeowners defaulting on their loans. CNBC takes an in-depth look at the numbers here.
We told you about this last week, the ongoing cleanup of a homeless encampment near the San Jose airport. Now we’re learning that at least 15 owners of RVs, trailers, and vehicles have taken up an offer of $500 from the city of San Jose. By the city’s count, 97 vehicles are still there at the encampment at Columbus Park. Those who refuse to take the deal to leave will be given notices on a rolling basis between now and Nov. 18 to immediately vacate the park. The goal is for the park to be cleared out by that date. Watch Robert Handa’s report for the latest.
A tale of two Bay Areas. Fremont is among the safest places to live in the country while Oakland is among the riskiest. That’s according to new rankings from Wallethub, that compared 182 cities and looked at three key dimensions: home and community safety, natural disaster risk, and financial safety. Fremont is ranked as the 17th safest city to live in the country, the highest California city on the list. On the other end, Oakland ranks 8th among the riskiest cities to live in the U.S. Watch the rankings.
Cooling down heating up
Cooling down: Home Prices in the Bay Area. This could be good or bad news for you, housing prices are dropping in the Bay Area and are expected to keep coming down next year. The California Association of Realtors is predicting home prices here will drop about 9% more in 2023 and they also expect sales to slow as the market cools. Watch NBC Bay Area’s Raj Mathai speak to a realtor about the shift.
Those higher rates are leading to home prices dropping too. The average home price across the country is down about 2%, or $8,800, off its June peak of $438,000. But we all know that Bay Area prices are way higher than that. A new report says home prices are off their peaks in 97 of the 100 largest U.S. markets, but they’re still roughly 40% higher than they were before the pandemic. Read more about what’s happening with homes prices.
Heating up: Inflation. You’ve seen the prices go up at the grocery store and gas station. Well, it’s confirmed, inflation jumped by 8.2% in September versus a year earlier, that’s higher than analysts expected. But a slight decline from August. To break it down easier, a basket of goods that cost $100 a year ago, will now cost you $108.20 today. And “core” inflation, which takes out food and energy costs, jumped to its highest level since 1982. See a chart on how inflation affects prices.
Listings on fire
Is this a flipper’s dream? A burned-out home is on sale in Oakland for more than $765,000. The 4-bedroom, 2-bath is listed on Redfin as a “Rare opportunity to get in for less.” It’s located in Oakland’s Laurel District and is described as a “highly walkable, dog-friendly, and health-focused area!”
“Burning Love” isn’t just the name of an Elvis hit, it’s also the feeling you might get after you buy one of the King of Rock’s former homes. The Palm Springs home that Elvis and Priscilla Presley rented for a year just after their marriage in 1967 is hitting the market for $5.6 million. The 4-bedroom, 5-bathroom, 4,600-square-foot property earned the name “House of Tomorrow” because of its the futuristic design. See more photos here.
Making it in the Bay
Relief is on the way. This week, California’s ‘Inflation Relief’ Payments are going out. The first payments are expected to hit accounts this Friday with a second around on October 28th. Payments range from $200 to $1,050. It all depends on how much you make. California created a calculator to see how much you’ll receive here.
Two Bay Area Cities top the list of the most expensive U.S. Cities based on monthly expenses. Can you guess what they are? The list from Doxo calculates expenses by adding up Mortgage/Rent, Auto loan, Utilities, Insurance, mobile phone bill, and other items. People living in San Jose pay the highest monthly bills, with an average of $3,151 or 66.8% higher than the national average of $1,889. See what the second highest city here.
Beyond the Bay Area
You think rent prices are bad here? Check out what happened to this renter back east in New York. Her Manhattan apartment was $1,881 in 2020, increased to $2,400 in 2021 and jumped another whopping $1,100 to $3,500 this year. So, what will she do? “I’m going to put my stuff in storage and go to Europe and work remotely there.” What’s going on in NYC? CNBC has insight into unique challenges facing renters.
We jump from the big apple to across the pond where mortgage mayhem is sparking fears of a housing market crash in Britain. A swathe of tax cuts announced by the government sent interest rate expectations soaring, driving up lending rates for homebuyers. If interest rates remain the same, Oxford Economics estimates that house prices will be approximately 30% overvalued. Read more from CNBC’s Money Report.
By the numbers
Our NBC Bay Area business and tech reporter Scott Budman is always keeping a close eye on the latest housing stats. Be sure to follow him on Twitter @ScottBudman for more.
Investigative series: Overpriced, Overwhelmed, Over It!
Are real estate investors to blame for the housing crisis? While many investors say they add value to neighborhoods, neighbors, and tenants impacted by the developments say they expedite gentrification. In episode 1 of our digital-exclusive investigative series, “Overpriced, Overwhelmed, Over It!”, we explore why in some areas cash is king.
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Article source: https://www.nbcbayarea.com/news/local/making-it-in-the-bay/housing-deconstructed-newsletter-bay-area-housing-market-cooling-down-burned-out-house-listed-for-765k-and-sj-offers-rv-owners-500/3032454/