Is California Too Expensive to Buy a Home? | RealtyPin.com
LOS ANGELES, March 6, 2013 /PRNewswire-iReach/ -- If you live in California, then you probably already know that some areas are beyond your budget – like the luxurious beachfront properties in Orange County or the swanky neighborhoods up in Silicon Valley. But has California's entire housing market outpaced "regular" people? Is it simply too expensive to come in and buy a home in the Golden State these days?
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rs, the median price of a single-family home here is $353,190. If you were to go out today and get a 30-year fixed rate mortgage (that's the most popular loan option) and put down 20% (which most lenders are going to ask for these days), your monthly payments would be $1,670 – including an average estimate of your property taxes and homeowner's insurance (which any lender is going to make you buy).
At that rate, you would have to make nearly $67,000 a year in order to qualify for your mortgage – or, at least your household would, if you were going to have your spouse or significant other co-sign on a mortgage with you.
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The only problem? The average household income in California is significantly less than that – only $57,287, to be exact!
In fact, the California Association of Realtors says that only 48% of Californians can actually afford to go out and buy a median-priced home these days. That's much lower than the figure was back at the end of 2011, when they estimated that 55% of Golden State residents could afford to buy a median-priced home.
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In some parts of the state, the difference between the median home prices and the average income is much bigger. According to a recent article on Realtypin.com, it has become nearly impossible for people to afford homes in the Bay Area. In fact, the San Francisco area was named the 2nd-least affordable metro in the country at the end of 2012! Here, the average home price is $659,000, but the average household income is only $103,000. According to the California Association of Realtors' recent study, only 22% of people living in the San Francisco area can afford to buy a median-priced home there.
What about the most affordable metros?
According to the California Association of Realtors, there was a tie for the most affordable counties. In both Kings and San Bernadino Counties, it's estimated that 76% of the residents there could afford to buy a median-priced home.
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