Tuesday, February 18, 2014

California Sure Is One Expensive State To Live In

I'm on course number four of a five course pre-req to take my brokers license exam. I've been selling homes for twelve years, so I'm taking it to the next level for my clients.

The one I'm at now is all about California economics. My husband says 'Must be boring." No, it's quite interesting!

Read an article this morning, my textbook has been discussing it for about 100 pages already, the Housing Affordability of California....dropping yet again. Meaning less people can afford to buy a median priced home in the Sunshine State.

Fourth quarter of 2013, median priced home in Cali was $431,510. Up about 80k from one year prior. To purchase the 2013 home price, buyers need to be making almost 90k/year. The year prior it was under 70k. Needless to say, that's a lot of income to purchase a home.  So, only about 32% of Californians can buy that priced home. In the first quarter of 2012, the percentage of buyers in this western state that could buy a median home was 56%. Considered a record high!

My textbook showed it at one point under 20%. Awful. Absolutely awful. We are sure lucky if we make enough money to buy a home in this state. How many of you can afford to buy a median priced home in California?

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