By Ben Cogan, The Associated PressAs many as 70,000 Americans could lose their homes if the California legislature fails to act by next week, and the state’s real estate market is already in free fall.
The latest news: In a sign that housing prices are starting to slide in the state, the latest U.S. Census figures show California’s median house price is now $1.29 million, down 6.5 percent from its February price of $1,305,000.
It’s the steepest drop since the last time the state was measured in this measure in 2006.
Home prices are falling across the country, but in California, the situation is even worse.
Home values are plummeting in all 50 states and the District of Columbia, and California is on pace to surpass the all-time high of $2.2 trillion hit in 2016.
The median home value for the San Francisco Bay Area is now down by about $300,000 since March 2016, according to the real estate site Trulia.
Home prices in Los Angeles, which is the nation’s largest city, are down an additional $1 million over the same period.
The most recent report from the Census Bureau says that California has surpassed the $2 trillion mark for the first time since 2008.
A decade ago, California was considered a bubble state, with housing prices at the peak of their popularity and the country’s biggest credit card issuers struggling to make ends meet.
That’s no longer the case.
The state has become a poster child for the housing market and it’s getting worse.
The average monthly rent for a one-bedroom apartment in the San Fernando Valley is now about $2,600, down from $2 to $2 per month a decade ago.
Many homeowners have also had their property foreclosed on, and rents have risen sharply for the elderly.
Homeowners have taken to posting signs on their front doors urging people to stay in their homes.
In some places, even if a sign is up, people are more likely to leave their homes rather than return to their homes, Trulia said.
“It’s really difficult for people to make a good living, so the signs are more of a marketing ploy than a marketing strategy,” said Jennifer Schmickler, a spokeswoman for the National Association of Realtors, which represents home sellers.
Some homeowners are also taking their insurance to another level.
The California Association of REALTORS, which has nearly 2,000 members, recently created a mobile app for residents to stay up-to-date on the state of their homes and the real-estate market.
The group said it will soon launch a nationwide mobile app, and some people have already registered to use it.
“A lot of people have done that, but it’s just starting to get a little bit more sophisticated,” said Joe Pescovitz, the association’s chief executive.
Schmickling says she hasn’t seen a single sign that people have been using the app.
She believes people are simply choosing to stay put.
“They don’t want to move,” she said.
“The real estate industry has been through a rough patch,” said Trulia economist Richard Reisner.
“People are very concerned about their financial status and the fact that they have a mortgage.
They don’t feel they’re going to be able to afford to buy a house.
They’re very, very cautious about buying a home.
People are also very concerned that if they get into a downturn, they may not be able or willing to buy again.”
The real-home market has suffered from the impact of a record number of foreclosures.
The federal government has warned that it could lose $100 billion in real-property tax revenue from the California drought if the state doesn’t take action to reverse the downturn.
But the realty industry says California has already saved itself billions in forecloses by reducing foreclosing rates and issuing loans to buyers who can afford them.
Realty agents in the Bay Area say it is still too early to tell how the crisis will affect the real market.
“The market is in a very bad place right now,” said Brian Anderson, owner of Anderson Realty Services in San Francisco.
“We’re not there yet.
The numbers just don’t add up.
There are still plenty of buyers and sellers.
There’s still room for growth.”
A real-rate home for sale in Santa Barbara, Calif., last month.
Real-estate prices in the city of Santa Barbara have been falling in recent years, and they have fallen even further in the past two months, according the California Association for Realtor, which tracks real estate trends.
The last time Santa Barbara was measured was in the year 2000, when home prices were more than double what they are today, according a Trulia report.