So what if home prices fall?
Question: Regarding your October 28, 2023, column titled “Son wants to know if parents should sell now or wait for ‘top dollar’ ” on The Mercury News and East Bay Times websites:
In that column, the person waited for an inheritance to help buy a house. You have several columns of that nature. The theme is that an older family member tells the younger recipient of a sizable down payment on a home to wait until home prices go down. I, too, am in a similar position. Waiting seems illogical.
As your examples demonstrate, home prices keep rising. In fact, what if a 10% home-price rollback does not help? In your examples, home prices in the Bay Area and California usually rise monthly and yearly. I do not want to wait. My parents presented me with a downpayment. Unfortunately, it is “When home prices go down.”
How can I urgently persuade my parents to give me the down payment now?
Answer: Your trusted local real estate agent can help. The real estate agent will have a preferred loan officer. These two professionals are well-versed in the real estate market and belong to or subscribe to different real estate websites. Full stop.
The historical home-price statistics can be presented in a variety of formats. The information will be accurate. Plus, the home sale prices, when visualized, paint a clear picture of the market trends. Your parents will see your point. If home prices roll so far back to make a difference, the economy might be in trouble, and your job may be, too.
Here is an update thanks to the economic team at the California Association of Realtors:
The median sold price of California’s existing single-family homes
April 2024 $904,210
April 2023 $811,510
Price change year-to-year +11.4%
The California median sold price of condominiums/townhomes
April 2024 $688,000
April 2023 $634,000
Price change year-to-year +8.5%
The California Association of Realtors also breaks down the states into regions. The statistics are telling. Note the strength of the median sold home price in these areas:
San Francisco Bay Area single-family homes
April 2024 $1,444,000
April 2023 $1,250,000
Price change year-to-year +15.5%
Central Valley single-family homes
April 2024 $493,500
April 2023 $463,000
Price change year-to-year +6.6%
Central Coast single-family homes
April 2024 $1,077,500
April 2023 $1,020,000
Price change year-to-year +5.6%
Far North single-family homes
April 2024 $364,900
April 2023 $385,000
Price change year-to-year -5.2%
Inland Empire single-family homes
April 2024 $607,000
April 2023 $565,000
Price change year-to-year +7.4%
Los Angeles Metro Area single-family homes
April 2024 $840,000
April 2023 $740,000
Price change year-to-year +13.5%
Southern California single-family homes
April 2024 $880,000
April 2023 $785,000
Price change year-to-year +12.1%
It is time to find that real estate agent and loan officer in your area. If not, I am here to help if you need more information. In the meantime, you and your parents can also see real-time home statistics via the webpage link in my signature information below.
Good luck!
For Housing Market Data in your area, visit my webpage for trends here. Do you have questions about home buying or selling? Full-service Realtor Pat Kapowich is a Certified Trust and Probate Specialist, Certified Real Estate Brokerage Manager and career-long consumer protection advocate.
He is based in his hometown of Sunnyvale, California. Office: 408-245-7700; Broker# 00979413 Pat@SiliconValleyBroker.com