Interesting statistics put out by C.A.R. (California Association of Realtors) yeterday about home affordability. With the rising prices of real estate we have hit a five year low! I have seen that in my market area of #Ukiah, #Willits and #Mendocino County, that many people are already priced out of the market and they are having to go into other areas. I saw this before interest rates increased and of course now that rates are in the mid to upper 4's, it is even worse. The lack of inventory have hurt many a buyer who have been out trying to find a home. Now, some of these borrowers will have to make a decision whether to continue to rent or look elsewhere.
This is happening everywhere as the median price of housing has increased over the last year from $185,000, to $202,000. What is interesting is that in California, only 36% of households can now afford to purchase a home. In San Francisco (San Francisco-San Mateo-Redwood City) that figure is cut in half to 18%!
Is there a solution, or will some people just not be able to be able to purchase a home and will remain life time renters? Not everybody get's to purchase a home and moving forward, the percentage that do, will be a lot less than what we say during the boom days from 2000-2006.