Affordable markets may be oxymoronic in the state of California as price growth continues to soar beyond the means of the average wage earner in the state. According to the California Association of Realtors there is no longer a single county in California with a median existing home price below $200,000 and just 10 counties out of 58 that have a median price lower or equal to the national median of $258,300.
CoreLogic reports that in August the median home price in San Diego is up 7.4 percent over last year. This is positive news for sellers who could see tidy profits, but troubling to those looking to buy. A new statewide poll of 1,200 registered voters by the Institute of Governmental Studies at UC Berkley found that 56 percent of voters would consider relocating to find a budget friendly home and nearly a quarter of that group stating they would leave the state altogether.
Perhaps most concerning is 48 percent of respondents describe the lack of affordable housing as "extremely serious". Today, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.