Morning Briefing: Improving economy boosts housing market in California

by Steve Randall07 Jul 2015
Improving economy boosts housing market in California
Realtors in California say that the improving economy and jobs growth is bringing buyers back to the housing market. The California Association of Realtors says that many former homeowners who lost their homes during the financial crisis are now in a position to buy a home again which is further boosting the market. In 2015, more households were formed as the share of buyers who previously lived with their parents increased to 12 per cent – the highest in the CAR home buyers survey’s history, up from 2 per cent in 2014. Additionally, the share of those who previously rented dipped from 40 per cent in 2014 to 39 per cent in 2015, and those who previously owned fell from 59 per cent in 2014 to 47 per cent in 2015.

The survey revealed some interesting shifts in buyers’ plans with more saying they plan to keep their home for an average of 20 years compared to the 2013 average of just 6 years. Mortgage downpayments averaged 24 per cent this year, down from 28 per cent last year but still above the traditional average of 20 per cent. First-time buyers are funding their downpayment with savings (49 per cent) or a gift/borrowing (33 per cent).
Avatar actor sells Hawaii home for huge loss
Sam Worthington has sold his home in Kealia Makai, Hawaii for $4.2 million. The 3-bedroom, 3.5 bathroom home set in 5 acres and including a pool was built 7 years ago. The LA Times reports that the actor, who played Jake Sully in the blockbuster movie Avatar, bought the home and an adjacent plot for a total of $6.1 million six years ago. Having sold the plot for $700,000 and the house of $4.2 million it leaves Worthington down $1.2 million.
Moody’s set to take 2 floors at One World Trade Center
Credit ratings agency Moody’s is reportedly about to sign a lease for 80,000 square feet of office space at One World Trade Centre in New York. The Durst Organization’s development in conjunction with the Port Authority has some big name tenants including Conde Naste, High 5 Games, and the US General Services Administration but the New York Post reports that the Moody’s deal would be the largest from the financial services sector.



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