CNNMoney gives us the Top 10 Least Affordable Housing Markets and California Won Big. It was almost a sweep except for that pesky position #6 captured by NY/NJ.
- Los Angeles-Long Beach-Glendale, CA
- Santa Ana-Anaheim-Irvine, CA
- Salinas, CA
- Merced, CA
- Santa Barbara-Santa Maria-Goleta, CA
- New York-White Plains-Wayne, NY-NJ
- San Francisco-San mateo-Redwood City, CA
- Napa, CA
- San Luis Obispo-Paso Robles, CA
- Modesto, CA
The minimum household income needed to buy an entry-level home in CA was $96,760 for a $477,400 home, according to a March 2007 report released by the California Association of Real Estate.
CAR’s data says a first-time home buyer is looking at a monthly payment of $3,230 which includes taxes and insurance.
In the East Bay area of California where we work (Danville, San Ramon, Dublin, Pleasanton) that will get you a “condo box.” One recent report I read showed the affordability index in this area at a whopping 19%.
People moving into the area often suffer severe CA sticker shock.
There are many affordable housing programs to help first-time buyers, but in total, given the value of real estate, it’s only a drop in the bucket of what is needed. Something’s gotta give – we’ll see what does.
Affordable Housing Resources:
Omid Behjou of Bank of America has helped us put 4 first-time buyers into homes in the last 60 days. All of our new homeowners rave about his service.
3 Comments
They could move to Minnesota. You should sell people’s homes and then send them to me. We could take the proceeds of the sale and buy a couple of houses. Why don’t we form a partnership?
Teresa – That might be an excellent idea. aI can’t imagine a better partner. Maybe we could start another blog – The Real Estate Genies
Minnesota is one of the best places to buy real estate right now. I would definitely be interested in finding out more about your possible partnership, John and Teresa. Please inform me if you decide to do anything!