Selma Hepp, Senior Economist, California Association of Realtors
NATIONAL HOUSING FUNADAMENTALS ARE POSITIVE
Low mortgage rates, lending loosening, affordability still good in our areaDistressed sales less than 10% of marketInvestors leaving creating more opportunity for buyers needing financingOverall home ownership rate has stabilizedInternational demand for housing in CA is strong from ChineseConstruction is up NATIONAL ECONOMIC FUNDAMENTALS ARE BETTER
Economic growth is acceleratingunemployment rate 5.9%Constructions jobs up in last 12 months248,000 new jobs in Sept BUT... DEMOGRAPHICS AS DESTINY?
affordability is worseninghome ownership rate for 18 to 34 yrs old still fallinghousehold formation is VERY slowUS has become a Rental NationMillenials delaying "adulthood" and staying put longer, student loans, dim job prospectsBaby boomers delaying retirement, not selling and staying longerInventory…