Good News for California Homebuyers: Home Prices Are Actually Falling in Some Areas
If you’ve gone house-hunting here lately, it seems you might need all the gold in the Golden State to keep up with home prices. That’s why it’s such good news to learn that the residential real estate market has actually taken a slip in some places. Combine that with a few winning strategies for saving on homeowners insurance and you might find yourself with an affordable roof over your head.
You didn’t think that would happen anytime soon, did you?
Let’s start with a look at the bigger picture, and then we’ll drill deeper.
Is the Cali Real Estate Market Really That Out-of-Bounds?
If you’re a recent California homebuyer — or are seriously trying to join that exclusive club — you already know the answer to that question. You live in one of the priciest residential real estate markets in the country.
According to a survey conducted by World Population Review, only in Hawaii and Washington D.C. is the median cost of housing higher in 2023 than it is here.
But when you break down single-family housing affordability by location, many California homebuyers fare even worse. Five of the 10 most expensive housing cities in the nation are right here on our golden shores. And in those five cities, you’ll find a pretty big chunk of the state’s population.
Take San Jose, for instance (if you can afford to). In the fourth quarter of last year, it took the title of being the U.S. city with the highest home prices. The median home price here was a budget-busting $1,577,500 at that time, according to figures from the National Association of Realtors.
So How About That Promised Good News About Housing Affordability in California?
Glad to share. Even though it comes with a bit of bad news too. The recent economic slump in the tech sector nationally has been especially felt in Silicon Valley and other techy and expensive regions. That’s translated into downward housing trends in these areas.
No, you still won’t pick up much real estate for a song here, but you’ll likely pay a sizeable amount less than you would have put down a year ago for the median-priced home.
Let’s go back to San Jose. That $1,577,500 median home price we mentioned above? It already represents a median home price discount of 5.8% from the year before. And the more recent price represents a roller coaster drop of 19% from the city’s median high of about $1,900,000.
In San Francisco, it’s pretty much the same eyebrow-raising (in a good way) housing trend. By the last quarter of last year, prices had dipped to a “mere” $1,230,000 on the median-priced single-family dwelling in SF. That was down as much as 22% from the peak point about a year ago.
Southern California’s Los Angeles and San Diego are also ranked at or near the top of this notorious list.
So California Homebuyers Can Afford Housing Now?
Nope. We’re not saying that these recent price drops mean that cost is no longer a consideration when looking into the real estate market here. Not even close. Seven-figure sale prices are still seven figures, after all.
The point we’re trying to make is that the real estate market is moving in the right direction for California homebuyers in some locations. You have a better shot at landing a home deal in some Cali cities than you did a year or maybe even several years ago. So there’s that.
However, even if you can swing it financially, it’s likely to be a close call. If you’re like most Californians, you’ll find that your house payment every month will have to be carefully budgeted. Every dollar counts. That’s why it’s so important to save money in other areas to help offset the still-hefty weight of your mortgage.
And that’s why a winning strategy for saving on your homeowners insurance is so critical: Because anything you save will help reduce your total housing costs.
How Can I Get the Most Affordable Homeowners Insurance on the Market?
By planning carefully and talking with the right homeowners insurance agent. That’s how.
When you consider the incredibly high cost of a home in this state, the much smaller cost of insurance can get lost in the numbers being crunched. That’s understandable, but if you just sign with the first insurer that comes to your attention, you could spend too much and get too little for too many years.
Start by reaching out to an independent homeowners insurance agent. The word independent means they don’t work for just one insurance company. If they did, they’d only be able to offer you coverage from that single carrier. Take it or leave it. They’ve got nothing else to sell you.
An independent agent, on the other hand, has contracted to represent insurance lines for multiple major carriers. In other words, they can shop for competitive coverage on your homeowners insurance and bring you the best price for options that work to your benefit.
Your independent agent can also bring you strategies for further reducing your coverage costs. This might range from bundling your coverage with other insurance policies you already carry from the same brand to showing you the cost of coverage at different deductible levels.
(Your deductible is the amount that you’ll pay for a covered claim before your insurer handles the rest. The higher your deductible, the lower your monthly premiums, but the more you’ll have to pay out of pocket. So, there’s a trade-off that your agent will help you better understand.)
Cut Your California Home Cost with Affordable Home Insurance
Housing affordability in California is relatively good news these days. Or better news. House prices won’t always be in decline. Therefore, it’s in your best interest to act now to save on your total house payment.
We can help you with affordable homeowners insurance rates that will let you further reduce the cost of owning a home here in CA. Call your independent Cost-U-Less Insurance agent today at (800) 390-4071. Or get a quick quote online. You can also find a Cost-U-Less California location near you to meet personally with an independent homeowners insurance agent.
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