California housing affordability dips in second quarter 2019, C.A.R. reports

• Thirty percent of California households could afford to purchase the $608,660 median-priced home in the second quarter of 2019, down from 32 percent in first-quarter 2019 but up from 26 percent a year ago. 
• A minimum annual income of $122,960 was needed to make monthly payments of $3,070, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.17 percent interest rate.
• Forty percent of home buyers were able to purchase the $475,000 median-priced condo or townhome. An annual income of $95,960 was required to make a monthly payment of $2,400.

LOS ANGELES (Aug. 7) – Higher home prices negated the lowest interest rates in more than a year and reduced Californians’ ability to afford a home purchase in the second quarter of 2019, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2019 dipped to 30 percent from 32 percent in the first quarter of 2019 but was up from 26 percent in the second quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI). California’s housing affordability index hit a peak of 56 percent in the second quarter of 2012.

C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $122,960 was needed to qualify for the purchase of a $608,660 statewide median-priced, existing single-family home in the second quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,070, assuming a 20 percent down payment and an effective composite interest rate of 4.17 percent. The effective composite interest rate was 4.62 percent in first-quarter 2019 and 4.70 percent in second-quarter 2018. 

Housing affordability for condominiums and townhomes also slipped in first-quarter 2019 compared to the previous quarter, with 40 percent of California households earning the minimum income to qualify for the purchase of a $475,000 median-priced condominium/townhome, down from 41 percent in the previous quarter. An annual income of $95,960 was required to make monthly payments of $2,400. Thirty-six percent of households could afford to buy a condominium/townhome a year ago.

Compared with California, more than half of the nation’s households (55 percent) could afford to purchase a $279,600 median-priced home, which required a minimum annual income of $56,480 to make monthly payments of $1,410.

Key points from the second-quarter 2019 Housing Affordability report include:

• When compared to a year ago, housing affordability improved in 42 tracked counties and declined in five counties. Affordability remained flat in one county.
• In the San Francisco Bay Area, affordability improved from second-quarter 2018 in every county. San Francisco County was the least affordable, with just 17 percent of households able to purchase the $1,700,000 median-priced home. Forty-six percent of Solano County households could afford the $445,000 median-priced home, making it the most affordable Bay Area county.
• Affordability also improved in all Southern California regions, with Orange County being the least affordable (24 percent) and San Bernardino County being the most affordable (50 percent).
• In the Central Valley region, only Kern County experienced a decline in affordability from a year ago, decreasing from 53 percent in second-quarter 2018 to 50 percent in second-quarter 2019. San Benito County (35 percent) was the least affordable and Kings County (55 percent) was the most affordable.
• Housing affordability improved in three counties in the Central Coast region — Monterey, San Luis Obispo and Santa Cruz — and was unchanged in one, Santa Barbara.
• During the second quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (55 percent) and Madera (51 percent). The minimum annual income needed to qualify for a home in these counties was less than $60,000.
• Mono (15 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) counties were the least affordable areas in the state. San Francisco and San Mateo counties required the highest minimum qualifying incomes in the state. An annual income of $343,420 was needed to purchase a home in San Francisco County, and an annual income of $338,870 was required in San Mateo County.

See C.A.R.’s historical housing affordability data.See first-time buyer housing affordability data.

Leading the way in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS®

Traditional Housing Affordability Index

Second quarter 2019

STATE/REGION/COUNTY	2nd Qtr. 2019	1st Qtr. 2019		2nd Qtr. 2018		Median Home Price	Monthly Payment Including Taxes & Insurance	Minimum Qualifying Income
Calif. Single-family home	30	32		26		$608,660	$3,070	$122,960
Calif. Condo/Townhome	40	41		36		$475,000	$2,400	$95,960
Los Angeles Metro Area	32	33		29		$540,000	$2,730	$109,090
Inland Empire	42	42		41		$380,000	$1,920	$76,760
San Francisco Bay Area	24	26		18		$980,000	$4,950	$197,970
United States	55	57		53		$279,600	$1,410	$56,480
San Francisco Bay Area
Alameda	23	25		16		$950,000	$4,800	$191,910
Contra Costa	35	37		29		$690,000	$3,480	$139,390
Marin	21	21		18		$1,381,250	$6,980	$279,030
Napa	28	29		25		$710,000	$3,590	$143,430
San Francisco	17	17		14		$1,700,000	$8,580	$343,420
San Mateo	18	18		14		$1,677,500	$8,470	$338,870
Santa Clara	20	20		16		$1,330,000	$6,720	$268,680
Solano	46	46		38		$445,000	$2,250	$89,900
Sonoma	28	27		20		$660,000	$3,330	$133,330
Southern California
Los Angeles	29	28		26		$567,010	$2,860	$114,540
Orange	24	24		20		$835,000	$4,220	$168,680
Riverside	39	39		37		$420,000	$2,120	$84,840
San Bernardino	50	50		49		$310,000	$1,570	$62,620
San Diego	27	27		23		$655,000	$3,310	$132,320
Ventura	30	29		28		$650,000	$3,280	$131,300
Central Coast
Monterey	24	25		19		$630,000	$3,180	$127,270
San Luis Obispo	25	26		22		$640,000	$3,230	$129,290
Santa Barbara	20	25		20		$724,500	$3,660	$146,360
Santa Cruz	17	17		12		$937,500	$4,740	$189,390
Central Valley
Fresno	48	48		46		$279,920	$1,410	$56,550
Kern	50	50		53		$255,000	$1,290	$51,510
Kings	55	57		50		$250,000	$1,260	$50,500
Madera	51	52		48		$277,000	$1,400	$55,960
Merced	47	46		42		$282,000	$1,420	$56,970
Placer	45	46		41		$514,950	$2,600	$104,030
Sacramento	44	44		41		$385,000	$1,940	$77,770
San Benito	35	31		30		$571,500	$2,880	$115,330
San Joaquin	44	43		38		$380,000	$1,920	$76,760
Stanislaus	48	47		45		$325,250	$1,640	$65,700
Tulare	50	51		48		$247,500	$1,250	$50,000
Other Calif. Counties
Amador	NA	NA		44		NA	NA	NA
Butte	35	34		38		$370,000	$1,870	$74,740
Calaveras	46	47		43		$343,000	$1,730	$69,290
El Dorado	40	40		38		$519,500	$2,620	$104,940
Humboldt	37	36		33		$320,000	$1,610	$64,570
Lake	44	44		37		$267,000	$1,350	$53,820
Lassen	63	63		64		$204,000	$1,030	$41,080
Mariposa	45	41		39		$300,000	$1,510	$60,350
Mendocino	29	28		22		$400,000	$2,010	$80,380
Mono	15	10		14		$699,500	$3,510	$140,410
Nevada	40	40		32		$419,000	$2,100	$84,020
Plumas	37	48		42		$367,390	$1,840	$73,600
Shasta	47	44		46		$281,000	$1,410	$56,230
Siskiyou	49	53		48		$232,500	$1,160	$46,480
Sutter	46	46		45		$312,500	$1,560	$62,400
Tehama	47	43		51		$244,000	$1,220	$48,680
Tuolumne	48	45		43		$300,000	$1,490	$59,790
Yolo	40	39		33		$455,000	$2,260	$90,590
Yuba	46	46		45		$305,000	$1,520	$60,660

Government Programs to Get Free Money

If you need help paying some bills or taking care of your family, the government can sometimes help. Many state and federal programs exist to help not just low-income families, but people of varying income levels. Many programs are meant to help homeowners.

Here are some of the various types of government help available:

Down Payment Assistance
If you can’t afford a down payment on a home, many states offer down payment assistance. To find such programs in your state, start at the Federal Housing Authority. Many states offer multiple programs.

Nevada, for example, helps with a grant of up to 5 percent of a mortgage to be put toward a down payment and closing costs. It’s available to anyone with an annual income below $98,500.

Utility Bills
Low-income households can get help paying heating and cooling bills from the Low Income HomeEnergy Assistance, which is funded by the Department of Health and Human Services. The grants are issued by individual states, which set their own eligibility requirements.

For discounted landline or cellphone service, the income-based Lifeline program provides eligible customers at least $9.25 toward their bill.

Childcare
Annual costs for infant care range from about $5,000 in Mississippi to $22,600 in Washington, D.C., according to the Economic Policy Institute…a big cost for any family.

The Child Care and Development Fund helps low-income families by giving money for childcare for children under 13.

Unclaimed Money
Not exactly free money, unclaimed money is money owed to you because you either forgot about it, lost it or didn’t claim it. It can be a deposit paid to a utility company that you never got back, a lost savings bond, unclaimed life insurance benefits or an uncashed paycheck.

The funds are turned over to the state when the owner can’t be contacted, such as through clerical errors or companies having old addresses on file. The website unclaimed.org is a good place to startchecking to see if you’re owed unclaimed money.

With any of the above programs, be wary of anyone who says they represent a government agency and are contacting you with an offer of free money. The government rarely reaches out to people with such offers.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

6 Colors to Paint Your Ceiling

When it comes to getting creative with paint, it’s important to look beyond walls and accent furniture. In fact, let your gaze travel all the way up to the ceiling.
 
According to Better Homes & Gardens, choosing an unusual color for your ceiling will instantly add style and atmosphere to any room in your home. Here are six great choices to consider:

1. Dark Browns
Rich shades of brown make a room feel cozy and den-like, perfect for a study or family room...especially any room that has a fireplace. Browns that have undertones of gray will blend nicely with neutral décor.
 
2. Water Colors
Think calming pastels, like turquoise, blues, mint greens and lavenders. These soft colors are perfect for any room you want to relax in, like a bedroom or screened-in porch.
 
3. Grays
From pale shades to darker tones, grays add mood and sophistication to any room. They’re especially effective when a room is accented with white upholstery and linen. They can travel nicely from the dining room to a home office.
 
4. Bold Shades
Make an unexpected statement by using a bright pop of color on a small-space ceiling, such as in your bathroom. This strategy works particularly well when you have a monotone color scheme on walls and flooring below.
 
5. Blue Hues
Take your cue from Mother Nature and paint the ceiling any number of cool blue shades, from a soft sky blue to a cool, gray blue. A pale shade with just a hint of blue will actually make your ceiling look higher.
 
6. Bright White
If you’re going to opt for white, go beyond the standard fare and choose a bright white to contrast and really show off your wall color, as opposed to just blending in with it. 
 
Top off your room with one of these colors and bring a whole new personality to your home. 

Is Your Extra Room an Untapped Revenue Opportunity?

More homeowners are renting out their unused bedrooms to supplement income—to the tune of 33.6 million!

That’s the number of extra rooms available across the country, according to a recent Finder.com analysis of U.S. Census Bureau data. Assuming each of these rooms could be rented out for $100 a week (a rock-bottom rent in many markets!), homeowners all told could earn $174 billion each year.

The breakdown, based on Census data, is as follows: there are 357,032,421 bedrooms in the U.S., and 323,391,100 people, leaving a surplus of 33,641,321 rooms. The total number of spare rooms is likely to be even higher, since many couples share a bedroom.

Where are all these available bedrooms?

Florida leads with 3,026,887 bedrooms, according to Finder.com, with Pennsylvania, Michigan, Ohio, and North Carolina rounding out the top five.

The average homeowner renting out an extra room, Finder.com’s analysis shows, can expect to gain $5,000 a year in rental income—an amount significant enough to pay down a mortgage.

Renting out an extra room is not decision to be taken lightly, however. Be sure to:

• Check with your accountant for the tax implications of the extra income and how to handle relevant tax payments.

• Research relevant county or state laws surrounding letting spare rooms.

• See if the terms of your lease allow subleasing of rooms, and if there are relevant local regulations.

• Make sure that your home insurance policy covers tenants, as well.

• Do a background investigation of potential tenants. Interview them in person and ask for financial records that demonstrate their income.

• Request a rental bond and two weeks’ rent in advance—this will offer you some security if your tenant proves unreliable.

Your real estate professional may also be a resource worth consulting. 

What Should You Do After Inheriting Your Childhood Home?

Your childhood home is a place where you’ve likely created many cherished memories; however, it isn’t uncommon for a person to have mixed feelings about inheriting that property later in life. While the home may have sentimental value, it could still cost a lot of money to maintain. What can you do with the property after taking ownership of it?

Rent the Property
Instead of selling the property, you could rent it out if you don’t want to live there yourself. Depending on market conditions, it could be possible to charge rental rates equal to or greater than the monthly mortgage payment. If the house is paid off, your monthly rental check can go toward an emergency fund or retirement account.

Run a Business From the Home
If the inherited property has a finished basement or an office space, it can be the ideal place to run your company. Since no one else is living there, you can get business done without your spouse or kids interrupting you. In many cases, residential property will cost less than renting a commercial office space or entire commercial building.

Move Into the Home
Assuming that the home is in a suitable location and meets your family’s needs, it’s within your rights to move into the property yourself. This can be an ideal solution for those who live in an apartment and are ready to exercise more control over their living arrangement.

Sell the Home 
An option one may want to consider is selling the home and investing the money. The proceeds from the sale could be used to invest in your future. You can invest in education, your current business or a new venture. Investing in the stock market could result in significant profits both now and in the future. Of course, whether this is right for you depends on your timeline, investment goals and risk tolerance. Be sure to consult with a financial advisor prior to making a major investment.

A home can be a powerful tool to help you gain control over your life. If you choose not to sell or rent it, you have a place to call your own for years to come. If you do rent or sell it, it can serve as a tool to help secure your financial future.

Source: Kara Masterson/RISMedia’s Housecall

Home Selling To Dos Before Your Vacation

Summer is vacation time, but if you’re selling a home and planning on taking a break, there are some things to consider before taking time off.

This can be a popular time for house hunting. Long days of sunshine offer extra time in the day for people to visit, and parents looking to buy a house before the school year starts are often especially motivated.

So, before you go on a vacation, be sure to follow these steps for peak selling conditions:

Clean, clean, clean. You’re keeping your house in perfect condition while it’s on the market, but take a few extra steps to make sure your home is ideally staged while you’re away. Clear the fridge of food and drinks that may expire while you’re gone. Do the same with your pantry— toss or, better yet, give away opened packages of food that could spill. Clean and put away all dishes, and leave a bag in your trash bin. Vacuum and dust all rooms, make sure kids’ and teen rooms are well organized, and spruce up the bathroom.

Notify your agent. Before leaving, let your agent know and provide them with a number to contact you while you’re gone. Talk over the circumstances that would dictate a call that interrupts your fun. Obviously, an offer will warrant a call, text or email. Vacations are a good time for open houses, so an update after an open house could be productive. You also should arrange for a contact at home—a relative, friend or neighbor—who can access the house in case there’s a problem. Make sure they have phone numbers for a plumber, electrician, gardener, contractor, exterminator, etc.—anyone who might be needed in an emergency.

Halt mail delivery. A mailbox stuffed with envelopes and boxes, or even a pile of mail inside the home, is unsightly. Arranging for your post office to hold your mail while you’re away is best. Also, take the step to hold delivery of any newspapers you may subscribe to. There are things that may get dropped off at your house that you can’t stop in advance, such as free newspapers, phone books, flyers and menus placed on your door by local businesses—ask a neighbor to keep an eye out for these things and to remove them for you.

Remember to Relax. Your vacation may get interrupted with updates from your agent, but the goal should be to get some rest. Selling a home is stressful and getting a break from that process can put you in the right frame of mind after you get back.

How Can Smart Appliances Save Me Time?

Do you have enough hours in the day? We bet most of you wish you had more!

While connected appliances can’t make a day longer, they can help recapture more of your time. In fact, one recent study showed connected appliances save a typical household 100 hours a year.

According to the Association of Home Appliance Manufacturers (AHAM), these time savings can be sourced from several areas. If you’ll be away from home for a while, for example, connectivity ensures your appliances stay in working order while you’re gone. Should an appliance need repair, connectivity revolutionizes the process—manufacturers are already developing features in which repair technicians remotely identify problems and, in some cases, remotely repair them.

Day-to-day, a connected dishwasher, for instance, could “learn” when you typically wash dishes and begin washing them automatically. Clothes washers, in another instance, can give you guidance when it comes to cleaning a certain type of garment, saving you time spent researching.

What’s more, connected appliances have the potential—with the Smart Grid—to drive energy cost savings and improve the environment, automatically reducing energy use based on users' preferences, or allowing users to access renewable energy when available.

Want to learn more? Download AHAM’s white paper, Home Appliance Connectivity: Limitless Potential (www.aham.org/industry/ht/d/Join/pid/84076), for an introduction to the possibilities connected home appliances hold, as well as what manufacturers are doing to keep them safe and secure.

How to Hide More Seating In a Small Space

Whether it’s an apartment or a tiny home, small-space living can have so many advantages, both in terms of cost and lifestyle. But when it comes time to have a few guests over, finding a place to put everyone can indeed be a challenge. Here are a few clever strategies for tucking away seating options that can be accessed when the need arises.

Invest in an all-purpose bench. Place a bench up against a wall or window and use it to display plants, stacks of books or dishes. When company arrives, stash said items on a windowsill or in a closet and pull the bench out for extra seating.

Stow hassocks in your entertainment center. Buy a shelving unit for your television that includes room to house two small hassocks right underneath the TV. Pop these out whenever you need two extra seats in your living area.

Tuck stools underneath counter space. Have a counter in your kitchen? Buy backless stools that slide all the way underneath the counter, so that they are out of the way and create more space when not in use. Put them into action wherever you may need when guests pop by.

Make chairs multi functional. Put small accent chairs to work in other rooms, such as to stack towels upon in the bathroom, or as a plant stand in the bedroom. They can resume their traditional role as a chair if and when the need arises.

Decorate with large pillows. Adorn your bed or sofa with a giant pillow or two that can serve as floor-cushion seating for casual soirees. Let’s face it - who doesn’t like to cozy up to the coffee table close to the snacks?!