A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Why does inventory continue to be low?
The California Association of Realtors did an interesting
survey of homeowners and found that the main reason people are not selling is
that they feel they can’t afford to sell. Even though prices have risen, buying
the new home that they desire is not affordable.
59 percent of homeowners have not considered selling in the
past year, and half of those say that the home they are in will be there
retirement home. But for others (44 percent), the affordability crunch, higher
property taxes, and home prices are keeping them in their current home.
What is the reason for all the fear, well these numbers tell
the story. In first-quarter 2012, when housing in California was at its most affordable,
a median income of $56,324 was needed to purchase a median-priced home. In
second-quarter 2015, that figure jumped to $96,160, with 99 percent of that
required income increase attributable to home price increases.
Many people would like to move, but even if they do make a
profit selling their home, buying a new home may not be possible due to the run
up in prices. On one hand they would be able to get more for their home, but on
the other hand the home that they would want to buy, also costs more and then
when you figure in other expenses and higher property taxes that go along with
a new home, staying in the home they are in now seems like the best choice for
the time being.
The other interesting part of the survey is how many people
are thinking about leaving the “Golden State”. The middle class is getting
squeezed with higher taxes and other costs in California. The energy costs
alone keep going up. For example, due to environmental regulations, California
pays $.60 to $1.00 more for a gallon of gas, it will become more onerous in the future.
Forty-five percent of homeowners
have considered moving out of state, with Texas (15 percent), Oregon (11
percent), New York (9 percent), and Arizona and Nevada tied (8 percent) as the
top five states where homeowners have considered moving.
Last, is an interesting find in the survey. You would think
that if people did move they would want a huge home to live in, but nearly
one-third of homeowners (32 percent) indicated a Craftsman-styled bungalow is
their dream home, beating those preferring mansions by more than double (14
percent) and Neo-Colonial (19 percent). California is considered the center of
the architectural arts and crafts movement and is home to the majority of
Craftsman-styled housing.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.