Author: Sean Reid

Mortgage rates averaged near 7% by Sept. 24, the highest since Early-Q1 2025, squeezing affordability and raising capital costs for builders across the US.
Builder sentiment fell 3 points to 32 in Late-Q3, its lowest since Late-Q3 2025, as lending, labor, fuel and construction costs stayed elevated.
Single-family home building was on track for a second straight annual decline in 2026, and signs pointed to additional pullbacks in 2027.
The broader US market remained caught between limited supply and affordability constraints, with demand present but increasingly sidelined by higher costs and interest rates.
For 2027, rising long-term rates signaled broader economic caution as 2026 growth leaned heavily on AI, crowding out lending for housing nationwide.

California's median single-family home price hovered near $800K, leaving condominiums as a more realistic ownership path for many younger, working, and middle-class households.
The main barrier described was legal risk: condo projects faced defect disputes that could reach court before builders had a chance to repair problems.
After a homeowners association formed, attorneys could pursue claims quickly, and that exposure reportedly led many developers to favor apartments over for-sale condos.
The bill would create a right-to-repair process, giving builders time to fix defects first while preserving homeowners' ability to seek stronger remedies.
Supporters argued those changes could restore feasibility for starter ownership homes and pair with California's broader efforts to upzone, streamline approvals, and reduce fees.

California owners 55+ can sell a longtime primary home, buy a replacement anywhere statewide, and carry over the old assessed value up to three times.
The transfer works best when the new home costs the same or less; if it costs more, the transferred assessment rises by that difference.
The law also covers severe disability and wildfire or declared-disaster losses, but age and disability transfers count toward the three-use lifetime limit.
Both homes must be principal residences, and owners must buy or build within two years, then file the county claim within two years.
Families planning ahead should note this benefit stays inside California, and inherited low assessments now usually require the heir to live there.

The measure would create a state-backed second mortgage for qualifying buyers of certain newly built California homes, with buyers contributing at least 3% upfront.
Assistance could cover up to 17% of the purchase price, combining with the buyer’s funds to reach 20%, while a primary mortgage covers the rest.
The state could issue up to $25B in revenue bonds, with participating homeowners’ loan payments intended to repay investors and cover program costs.
The down-payment barrier matters because many California families, especially Latino households facing higher housing-cost pressure, may afford monthly payments yet struggle to save upfront cash.
On November 3, 2026, California voters will decide whether this loan-based plan for qualifying new homes merits a statewide test at scale.

With 30-year fixed mortgage rates hovering in the mid-6% range, many Californians are weighing their options: is it smarter to hold off for potentially lower rates, or to take advantage of paths that require a smaller down payment? Proposition 37, a new ballot measure under consideration, could offer a game-changer for middle-income buyers. If approved, it would allow qualifying Californians to borrow up to 17% on select new builds, dropping the minimum cash needed at closing to just 3%. For context, with California’s median listing price around $745,000 in early Q3 2026, that’s about $22,300 for a down payment—an amount that could bring homeownership within reach for more families.

Of course, this assistance would come in the form of a second mortgage. While it could help buyers avoid PMI, it’s important to remember that having two loans might complicate refinancing down the road. My experience guiding clients through REOs, short sales, and complex financing means I’m always focused on long-term strategy as well as the immediate opportunity. The current guidance is clear: expand your search, compare lenders, boost your financial profile, and keep saving—rather than betting everything on rates falling in the future. As always, careful planning and a clear understanding of your options are key to making the right move in our ever-evolving California market.