Domestic accessibility: the problem continues to persist in California
Often, when we want to take on a particular market, the minimum access threshold is represented by the average prices present within it. If, a priori, you do not enjoy the minimum requirements in financial terms, it is impossible to deal with the available offer.
In California the average price of homes reached about $ 608,660 in the second quarter. This means that such high prices do not guarantee low interest rates, further reducing the capacity of the Californians themselves to buy a property in the second quarter of 2019.
The percentage of buyers that could actually afford to buy a property in California has fallen to 30%. A remarkable value, which goes to undermine and displace potential investors considerably.
Obviously, the level of accessibility varies according to the regions taken into consideration. But generally, the collapse compared to last year of the portfolio necessary to be able to appropriate a property is symptomatic.
In 2018, a minimum annual income of $ 100,000 was more than sufficient to afford the purchase of a standard property. Currently, however, as we said earlier, prices have more than tripled. If we were to think in terms of monthly fees, the figures would be around $ 3,000 at a fixed rate for about 30 years, with a hypothetical down payment of 20% and an interest rate (on average) of 4%.
Even for condominiums and townhouses accessibility has fallen to exorbitant levels.
So what are the key points in terms of economy that are expected to be realized for the second part of 2019.
• affordable housing affordability will probably improve in 42 counties, despite the convenience it will remain flat
• In the San Francisco area, affordability has already improved since the second quarter of 2018 in each county. Given that San Francisco is the least economic area, only 17% of families are potentially able to buy a home with an average price of $ 1,700,000.
• Southern California will also improve, with Orange County and San Bernardino County (25 and 50 percentage points respectively)
• The counties Mono (15 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) remain the least affordable areas of the state, but still richer in terms of opportunities and variety.
The situation therefore turns out to be particularly varied, but nothing limits the hopes of a remarkable recovery in the coming months. The limits derive from the excessive demand of the ever more consistent demand, which meets an "offer that obviously tends to rise in level, given the presence of infrastructures and increasingly advanced territorial wealth. We also remember that California has been and still is one of the most popular areas in the luxury segment.
So, dear investors, if you want to delve into Californian real estate, know how to deal with a rich but at the same time exceptional reality!
In California the average price of homes reached about $ 608,660 in the second quarter. This means that such high prices do not guarantee low interest rates, further reducing the capacity of the Californians themselves to buy a property in the second quarter of 2019.
The percentage of buyers that could actually afford to buy a property in California has fallen to 30%. A remarkable value, which goes to undermine and displace potential investors considerably.
Obviously, the level of accessibility varies according to the regions taken into consideration. But generally, the collapse compared to last year of the portfolio necessary to be able to appropriate a property is symptomatic.
In 2018, a minimum annual income of $ 100,000 was more than sufficient to afford the purchase of a standard property. Currently, however, as we said earlier, prices have more than tripled. If we were to think in terms of monthly fees, the figures would be around $ 3,000 at a fixed rate for about 30 years, with a hypothetical down payment of 20% and an interest rate (on average) of 4%.
Even for condominiums and townhouses accessibility has fallen to exorbitant levels.
So what are the key points in terms of economy that are expected to be realized for the second part of 2019.
• affordable housing affordability will probably improve in 42 counties, despite the convenience it will remain flat
• In the San Francisco area, affordability has already improved since the second quarter of 2018 in each county. Given that San Francisco is the least economic area, only 17% of families are potentially able to buy a home with an average price of $ 1,700,000.
• Southern California will also improve, with Orange County and San Bernardino County (25 and 50 percentage points respectively)
• The counties Mono (15 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) remain the least affordable areas of the state, but still richer in terms of opportunities and variety.
The situation therefore turns out to be particularly varied, but nothing limits the hopes of a remarkable recovery in the coming months. The limits derive from the excessive demand of the ever more consistent demand, which meets an "offer that obviously tends to rise in level, given the presence of infrastructures and increasingly advanced territorial wealth. We also remember that California has been and still is one of the most popular areas in the luxury segment.
So, dear investors, if you want to delve into Californian real estate, know how to deal with a rich but at the same time exceptional reality!
