Are You Leaving California? #473

Hey, everybody, it’s Aaron Norris with the Norris Group. It is Friday, it’s October 18th, and are you going to leave California? That and much more as we cover the biggest headlines in real estate. Don’t miss the radio show and podcast. We are back with another part of I Survived Real Estate, part three. This time we’re talking about iBuyers. I get to interview several fellow technology nerds. I love it. We talk about the definition of iBuyer, who are some of the brands that are entering the iBuying space, including some of the real estate brands like Realogy and Keller Williams? What is blockchain technology and what should we expect to see from that in the real estate space? And which industries could be disrupted from blockchain technology? That and, of course, much more, so don’t miss out on the radio show and podcast. CoreLogic reported a steady rental market as people are still hesitant to buy. Rents increased 3 percent in 20 metropolitan areas in August of 2019, compared to 3.1% in August of last year. Builder confidence was at 71 this month, its highest in 20 months, according to the National Association of Home Builders. The Mortgage Bankers Association reported mortgage applications increased point five percent from last week, and mortgage rates increased this week with 30-year rates now at 3.69% and 15-year rates at 3.15.’s bargain-happy economics team found America’s hottest real estate markets for investors. The cities where the highest percentage of home sales are for flipping or renting out, usually after a rehab. The winners: the Midwest and South. They are the areas with the largest selection of older, lower-priced homes, with strong economies and popular growth, creating demand for housing. And these are quotes from George Ratiu, he’s the senior economist. He says, “most of these mid-sized cities have strong job growth and lower home prices and a more relaxed lifestyle for millennials.” So apparently its low priced and relaxed. OK, here are the top markets. We’ve got St. Louis, Missouri, Birmingham, Alabama, Miami, Florida, Tampa, Florida. Where else? Orlando, Florida. We’ve got Columbus, Ohio. We’ve got Las Vegas, Nevada. So, yep, it is aimed a little bit more at the South and the Midwest. OK. says over half of investors at foreclosure auctions planned to purchase fewer than five properties in 2019. And that’s according to their 2019 Buyer Insights Survey Report. The report found that 51 percent of auction buyers are mom-and-pops investors at this time. So that’s begun to increase. Twenty-two percent of buyers plan to purchase more than 10 properties for the year. Only 2 percent of buyers said they plan to purchase more than 100 properties in 2019. So, Jason Allnutt, the CEO of, says foreclosure auctions are no longer dominated by larger investors at the courthouse steps. The majority of foreclosures and REO auction buyers are now smaller mom-and-pop investors. So what’s interesting about this is I wonder how many transactions are behind the scenes. I don’t know if some of these Wall Street lenders need to or investors need to necessarily go to the courthouse steps anymore. They may be buying notes and having other strategies. So that’ll be interesting to see, to watch over the next couple of years and see if that’s a trend that continues. Harvard’s annual state of senior housing report shows rising inequality, a shortage of affordable housing, and racial wealth gaps. And hey, welcome to the party, it’s like the rest of the real estate market. But the biggest concern here is that you’ve got a silver tsunami of ten thousand seniors retiring every day, looking at some rather dire numbers. The highest earners had a median income of $200,000, while the lowest incomes hit a median income of $14,400, even lower than it was in 2000. So these folks are planning to retire at a time where fixed incomes are fixed and we’ve got increasing costs and things like housing, utilities, and medical costs. So hearing that $14,000, I don’t understand how anybody can retire, at least here in the state of California with those kinds of numbers. Ever wonder what one million dollars gets you in today’s market? Well, in California, we all know not much. A new Zillow analysis shows a typical one million dollar home in the U.S. is a detached single-family home. That’s about 2200 square feet with four bedrooms and two and a half bathrooms. But as we all know, in some cities millionaires share walls. It’s a lot of a smaller space, sometimes they’re condos. So depending on where you’re at, that million dollars only goes so far. So some interesting top markets. Let’s take a look. The word probably isn’t “top market,” but the top three largest million-dollar homes that you can buy for a million dollars: El Paso, Texas. Knoxville, Tennessee. And Spring, Texas. So in El Paso, a million dollars is going to get you 7000 square feet with a five bedroom and five and a half bath. Let’s see, in Spring, Texas, that’s five bedrooms, four and a half baths and a little bit smaller, but the smallest million-dollar homes, yep, no surprise, those are going to be in northern
California in the Bay Area. San Francisco. That million bucks is going to give you about 1100 square feet, three bedroom, one bath. Oakland: 1540 square feet, three bedrooms and two baths. So, yes, California had five of the 10 smallest million dollar homes. No shocker there. So the question of the week is, are you moving from California? I have been taking nonstop phone calls. And what’s interesting is half of you talk to me about leaving just because of sheer politics. The other half want to talk about a recession. And they’re diversifying, upgrading inventory, it’s a lot of fun conversation, but everyone’s sort of got a mix of why they’re leaving. So are you staying and why? And what do you plan to do? I would love to hear what you got to say. If you’re on YouTube, please leave a comment below. And don’t forget to like the video and subscribe to the channel so you don’t miss a beat. If you’re on Facebook, please don’t forget to not only like the Norris Group page, but don’t forget to add us to your see first list, and with notifications on. Leave your comments below the video, and if we missed something, share the story on our comment sections on either YouTube or Facebook, and we’ll make sure to include it on our blog at Upcoming Events. Tomorrow is Saturday, October 19th and we’ve got our Financial Tactics Brunch. We have an amazing lineup of experts beating up some of your most complicated estate planning questions. And we are really close to being sold out. I think we might have to actually close it by the end of the day. If you’d like to come, please don’t wait. It’s in Costa Mesa, California. We do tape it, but not all of it always ends up online because we’re answering some pretty personal questions sometimes. So if you’d like to be there, we’d love to see you. It’s a very low-cost event. October 30th: 10 Decision to Make Before the Next Downturn in South OC REI. It’s one of the last times we’re gonna be doing this talk as we wind the year down. November 21st: The Innovative Real Estate Marketing with Pasadena FIBI. This is of the last times I’m talking about this topic this year about iBuyers, what they’re buying in the L.A. area, how to compete, the stuff that they’re buying, and yeah, check us out. And then February 1st, please mark your calendars: Turmoil: the Coming Storm of Negative Interest Rates. This is a full-day market timing event by Bruce Norris talking about an update on the market with some new chapters on things like negative interest rates. For more information on hard money loans, including fix and flip, buy and hold, new construction and accessory dwelling units, we’d love to work with you. Check out and hit that Hard Money Loan tab. For more information on passive investing with mortgages, trust deeds, and notes, hit that Invest Tab. With that, have a fantastic weekend and we’ll see you next week.

One comment on “Are You Leaving California? #473”

  1. Trish Hoffman says:

    I have left!

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