Hello everyone. My name is Selma Hepp, Trulia’s new Chief Economist. I am thrilled to now be a part of Trulia’s housing economics research team. Over the years, I’ve admired the prolific and creative insights that Trulia has uncovered about the housing market and I’m excited to build on the great work that has already been done.
I’m joining Trulia at an exciting time for the company and at a point of transition for the housing market. Home prices, sales, and new construction have been bouncing back over the past five years, and in some markets have outpaced their growth during the boom. In the beginning, investors propped up most of this growth, but now key economic fundamentals like job growth and household formation are driving the recovery. While this is great news for the economy, it’s actually a double-edge sword for the average house hunter: as home values improve, affordability worsens. In fact, housing affordability is one of the most pressing housing issues right now, and one of the key themes that I want to explore on the Trulia Trends blog in addition to inequality, and how major demographic shifts are impacting homeownership.
Trulia will continue to publish new research that will help house hunters understand which trends really matter, such as: Can I really afford a home in this neighborhood? What’s it like to live in this neighborhood? Where can I find my dream home? What compromises do I need to make? At the same time, I will follow all the major housing policy decisions and key industry reports– from home prices, sales, new construction starts, mortgage rates and job growth – and help house hunters translate what’s happening and how it will impact them. If you have a question or want to talk through story ideas, please don’t hesitate to reach out to me by email (selma@trulia.com) or Twitter (@SelmaHepp).
My Journey Home
When I accepted the position as Trulia’s Chief Economist, I immediately started my home search. The new job meant a long distance move from Los Angeles to the San Francisco Bay Area.
Buying a home typically takes 18 months. San Francisco is a notoriously expensive place for renters and buyers. The going median rent in the metro area is $3,500 which is actually $400 more than metro New York. Median prices, similarly, are well above a million dollars. The caveat, again, is actually finding a home that suits ones needs given the Bay Area’s notoriously tight supply of homes for sale. In the most desirable locations, the inventory supply is barely approaching two months. To put this into context, a more balanced housing market would require about seven months of homes for sale. But I’m not discouraged – inventory has been on an upswing and has improved over the last year.
Fortunately, I was able to find a sublease for a studio apartment in North Beach for three months – which would give me some time to really get to know the city and consider other locations around the Bay Area (many of my friends and colleagues suggested that I check out Oakland). But for now, I’m in love with my new home. In the coming months, I plan on soaking in all that San Francisco has to offer as I think about new ways of helping home buyers, sellers, and renters understand the housing market – all while enjoying my new view.
