Housing Market Weekly Headlines November 27th
As we move into the holidays the housing market continues to bring challenges of high prices. Fortunately mortgage rates have seen a bit of a dip over the last few weeks, bringing much needed relief to home buyers. This week's headlines cover mortgage applications, the future of Accessory Dwelling Units (ADUs) in the state of California, and the intricate dynamics of the rental market in sunny San Diego.
Mortgage Applications Soar to a Six-Week High
First up is a piece of news that has certainly caught our attention. Last week, mortgage applications reached their highest level in six weeks, as revealed by the Mortgage Bankers Association (MBA) in their weekly survey. While this is undoubtedly promising news, it's important to note that applications are still 20% lower compared to the same period last year.
What does this mean for you? It suggests that despite the lingering challenges of the current housing market, there is a palpable sense of optimism among buyers and a renewed interest in homeownership. If you've been contemplating a move or a refinance, now might be a great time to explore your options and make informed decisions.
San Diego's Rental Market: A Slow and Steady Rise
Turning our attention to the rental market in sunny San Diego. In a time when rent increases seem to make headlines across California, San Diego is experiencing a different trend. Rents in San Diego are rising at a slower pace compared to other areas in the state, with an annual increase of around 2%.
For renters and landlords alike, this relatively modest rise in rents offers some stability and predictability in an otherwise fluctuating market.
The prediction for San Diego County puts it among the slower rent gains in the region. Orange County is expected to grow by 4 percent annually and Ventura County by 3 percent. Los Angeles County and Inland Empire were also predicted to increase by 2 percent.
It's a testament to the unique charm and desirability of San Diego as a place to call home. If you're contemplating a move to our beautiful city or considering investing in rental properties, this steady rental market trend might just be the encouragement you've been waiting for.
New ADUs Can Be Sold Separately in California – Will San Diego Follow Suit?
Recently, California passed a law allowing newly constructed ADUs to be sold separately from the main residence. This change has opened up exciting opportunities for homeowners and investors alike, as it can potentially increase the value of your property.
But the big question on our minds is, will San Diego adopt this trend?
The optional statewide law, AB 1033, was signed by Gov. Gavin Newsom in mid-October, and allows accessory dwelling units, sometimes called granny flats, to be sold separately — and, presumably, at a lower price than your average home. The thinking is it could give low- to moderate-income Californians a chance at homeownership.
For homeowners with existing ADUs or those considering building one, this could be a game-changer in terms of future investment possibilities.
If any of these headlines have sparked your interest or raised questions, don't hesitate to reach out. I'm always call or message away. Until next week, stay warm, stay informed, and keep dreaming of that perfect place to call home.