Real Estate

Prop 37 to the rescue?

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California flag

A potential new policy – Proposition 37 – could theoretically allow California to save up to 17% on their home downpayment. With the median listing price of a home in California currently at approximately $778,000, this would require a downpayment of $156,000 at 20%, a number clearly out of the range of many California buyers. A 3% downpayment would be $23,000, certainly much more manageable.

While Prop 37 wouldn’t require the applicant to be a first-time buyer, it would stipulate that they be the first owner of the property, which is to stimulate much-needed housing development. An added benefit is that this proposition would allow buyers to avoid mortgage insurance, which is normally required for those putting down less than 20%.

Many analysts see this bill as benefiting California’s inland areas where land is less expensive and housing restrictions are less stringent.

Proposition 37 should be n the ballot for California voters later this year.

Renting is still cheaper than buying, but not by much

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Green Escrow | Rental

Yes, it is still generally cheaper to rent than to buy but that is changing as the median listing price of a starter home in the 50 main metros dropped 2.9% year over year while rents declined 1.4%.

These metro areas saw the biggest decrease in median list buying price as compared with rents.

  1. Oklahoma City, OK
  2. Orlando, FL
  3. Seattle, WA
  4. Miami, FL
  5. Tampa, FL
  6. Las Vegas, NV
  7. Nashville, TN

Coming soon: a data center near you

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artificial intelligence graphic

With the explosion of AI, it’s no surprise that data centers over 50 megawatts have increased 7X since 2018 and there are now over 350 in U.S. communities.

Of course, all of this is not without controversy. Many states and cities are pushing back on data center developments and there is growing public concern over the heavy resource use – power and water – as well as disruptive noise and increased pollution.

More and more data centers are targeting rural areas with an average of 27 miles from a metro area, up from 23 miles in 2017.

Finally, what impact are data centers having on home prices. As of now, the effects seem to be negligible, but, as with all things related to AI. that could change quickly.

If you want to live in these areas, you better move fast

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Green Escrow Services | Adding value to home

Even as the housing market remains static, there are some areas in the Northeast and upper Midwest where homes are moving fast. Note that many are close to the area’s largest metro areas – Philadelphia, Boston, New York, Detroit and Chicago. The actual zip codes are included.

  1. Peabody, MA (ZIP – 01960)
  2. Montclair, NJ (ZIP – 07042)
  3. Sewell, NJ (ZIP – 08080)
  4. Fairport, NY (ZIP – 14450)
  5. Westfield, MA (ZIP – 01085)
  6. Livonia, MI (ZIP – 48154)
  7. Lititz, PA (ZIP – 17543)
  8. North Haven, CT (ZIP – 06473)
  9. New Berlin, WI (ZIP – 53151)
  10. Wheaton, IL (ZIP – 60187)

New law could help these cities

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Green Escrow | New construction, housing

The recently passed 21st Century Road to Housing Act contains adjustments to the Community Development Block Grant program (CDBG) which is used the U.S. Department of Housing and Urban Development to incentivize new housing development.

Analysts agree that those areas that need new home construction the most, namely the Northeast and Midwest have the most to gain from CDBG, specifically these metro areas:

  • Milwaukee, WI
  • Detroit, MI
  • Toledo, OH
  • Newark, NJ
  • Cleveland, OH
  • Buffalo, NY
  • Pittsburgh, PA
  • Jersey City, NJ
  • St. Louis, MO
  • Minneapolis, MN

Market cools, price cuts return

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Price reduced sign

Spring into early summer looked fairly strong for the housing market but things cooled considerably in July due primarily to continued high mortgage rates and other economic pressures.

And, while it seemed as if sellers had mastered the art of pricing realistically, the slower than anticipated market produced an increase in price cuts, from 18.8% 50 20% nationwide.

While the Northeast and Midwest remained relatively stable price reductions were up significantly in the West and South with metro areas such as Portland, OR (31%) and Denver (30.9%) leading the way.

Fed keeps rate steady

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Green Escrow Services | Federal Reserve Board

Given the state of the economy, it wasn’t particularly surprising that the Federal Reserve chose to keep rates unchanged. What did raise a few eyebrows was three members voted to raise rates, citing a an ongoing concern over persistent inflation. Analysts now expect the Fed to raise rates later this year.

Homebuyers can expect mortgage rates to remain in the 6.5% range with the possibility of higher rates if inflation remains a problem.

Buyers have options

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Green Escrow | Real Estate News

Well, some options anyway. Like an active inventory over 1.1 million for the fifth straight week for the first time since November 2019. New listings increased by 109,000 properties as compared to 107,000 at the same time last year.

Median list prices and median p[rice per square inch both declined below last year’s levels.

Homes are spending the same amount of time on the market as a year ago.

California homeowners have plenty of equity – as long as they leave

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Green Esrcow | Affordable Housing

According to recent analysis, the Average California homeowner with a mortgage currently has $626,900 in home equity. The national average is $310,500, meaning a Californian could purchase a median-priced home outright in 48 states.

So. while household net worth increases, it is also what keeps the housing market slow as many homeowners are reluctant to give up their homes and favorable mortgage rates – hence the term golden handcuffs. Currently, home prices in California are 46% higher than they were in 2020.

Of course, this means that to take advantage of this home equity, it’s necessary to leave California – which is what many are doing. California lost 230,000 to other states in 2025 and 240,000 in 2024. And, while income in other states is about 8% less, the 48% difference in median-home prices certainly makes it worthwhile for some.

Starter homes are back (kind of…)

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Green Escrow Services | Young Family

For years, one of the crucial elements in the country’s housing market malaise has been the lack of starter homes. Fortunately, that situation is slowly easing with a number of caveats.

First, there are still 300,000 fewer affordable units on the market today than there were pre-pandemic. Also, in 2019 starter homes cost $256,000; today they sit at $344,000.

The South, specifically Florida, Texas, and the Carolinas have seen the greatest increase in starter homes – approximately 170,000. The Northeast and Midwest are actually worse than before the pandemic.

Again, the overall national trend is positive with rising inventory and moderating prices.