If you're a homeowner in California, buckle up for some exciting changes in 2024! The recent 'New Laws and Industry Outlook' event hosted by the Greater San Diego Association of Realtors spilled the beans on important updates, and we're here to break them down for you without all the confusing mortgage talk.
AB-1033: Selling Your ADU Made Easier
Let's start with the star of the show – AB-1033 - a law in California, and is a game-changer for homeowners like you. This groundbreaking state law gives California cities the option to let homeowners sell their Accessory Dwelling Units (ADUs) independently from the main house. ADUs are those extra spaces on your property, like a cozy 600-square-foot flat.
Before AB-1033, these spaces were mostly used for renting. But guess what? Now, you can sell them! It opens up a whole new world for people who thought owning a traditional home was out of reach. Frank Powell, the President of the San Diego Multiple Listing Service, explained it perfectly: "It incentivizes those who can’t afford housing to buy something they could afford, like a 600 square foot ADU, also known as the granny flat."
However, there's a small catch. If you decide to sell your ADU, you'll need to create something called a Homeowners Association (HOA). Don't worry; think of it as a little club to keep everything organized.
Now, not all areas in San Diego have embraced this new law yet. Some folks are thinking it over, weighing the pros and cons. Powell pointed out that the community is split – some worry about parking issues, while others see the potential benefits of making extra money by renting out these additional spaces.
Mortgage Rates: Your Ticket to Affordability
Now, let's chat about mortgage rates. It's like the interest you pay on a loan to buy your home. Last year, these rates were pretty high, around 8%. But here's the exciting part – they've dropped to the high sixes! Experts even predict they might go even lower. Lower mortgage rates mean more people might be able to afford a home.
Frank Powell has some smart advice for you. He suggests considering buying while rates are still a bit high because you might snag a house for a better price. And if rates go down even more, you can think about refinancing – that's like tweaking your mortgage to save more money.
What the Pros Think:
Real estate pros like Derrick Luckett, a broker with Destiny Six Financial Mortgage and Real Estate Services, find events like the 'New Laws and Industry Outlook' super important. Derrick emphasizes understanding home affordability for his clients. "Home affordability. Can I afford a home? What makes me want to be in a home? Why should I own when I can rent and not have the headache of it?" These are the questions people are thinking about, and it's crucial to address them.
As California evolves in 2024, the impact of AB-1033 and changing mortgage rates is significant. The chance for homeowners to sell their ADUs separately brings a fresh solution to affordable housing. Lower mortgage rates make it easier for more people to jump into the housing market.
Keep an eye on what your city decides about AB-1033 and how those mortgage rates keep changing. It's an exciting time, and there might be some golden opportunities for you as a homeowner! 🏠✨