Real Estate News 08/30/2024

Today’s News Synopsis:

A new law in California—Assembly Bill 1033—went into effect in January to allow homeowners to split up their property and sell ADUs like condos. This past June, San Jose became the first city to move forward since it was passed in 2023.

In The News:

 Sunset.com – “What California’s New ADU Law Means for the Housing Market“ (08-22-24)

“Last year, the city of San Jose issued more than 460 permits allowing homeowners to build ADUs on their property, according to NBC Bay Area.”

Redfin –  “6 of Every 7 People With Mortgages Have an Interest Rate Below 6%, But the Lock-In Effect Is Starting to Ease” (08-27-2024)

“The mortgage rate lock-in effect is prompting many homeowners to stay put, contributing to America’s housing shortage.”

CNN Business –  “Burned and uninsured: Wildfires are leaving California’s housing market in trouble” (08-18-24)

“Since 2015, the California Department of Insurance has kept a record of the number of renewed and canceled policies in the state’s high fire-risk areas, which make up more than a quarter of the state. They recorded an increase in canceled policies until the most recent report published in 2022, with the sharpest increase being 10% in 2019.”

CBS News – “How much would a $600,000 mortgage cost per month?” (08-28-2023)

“Mortgage interest rates are falling again. After hitting their highest level since 2000 last summer when the 30-year mortgage loan hit 7.31%, rates are around 6.50% now, nearly a full point lower than what borrowers could have secured last August.”

Bankrate – “Passive income: How is it taxed?” (08-29-2023)

“Passive income and portfolio income are types of income that involve little time or effort. They are considered unearned income (as opposed to earned income from a job) but are still generally subject to taxes.”