The California Association of Realtors released a report that Californian families who earn an average income can afford homes in only seven out of 32 counties due to high prices. The report also revealed that "someone earning the state's median income of $60,244 can afford less than a third of California's available homes, condos and town homes."
According to news10.net, the buyers that are earning a median income of $53,880 in Sacramento County where the median home price of $282,770, the houses are $10,000 more than what they can afford. In San Joaquin County, the difference is over $22,000. These two alone show how far the home prices are to what the citizen can afford in buying their own home.
Rosanna Garcia of Garcia Realty said that "It's getting harder for the average person to afford a home in California." For example, Judy Cornick, a Sacramento retiree, said that "Everything I really want size-wise is probably a good, $30,000, $40,000, $50,000 out of my reach" in which Garcia added "But in this two mile radius, there are only two homes available under $400,000 and everything after that is $500,000 to $900,000."
The California Association of Realtors released a report for the second quarter of 2015. The report said that the statewide median price of $446,980 was almost 50 percent higher than what a household with the median income of $60,244 could afford to buy. Garcia said "It is an issue. California's becoming unaffordable for the average person, which is not good for economy because fewer home purchases is not good for the economy."
With the nine- year high real estate sales last July, the median prices of houses in Southern California also increased with 5.5%. According to latimes.com, the housing market picked up momentum after an improvement in economy which gave confidence for families to become homeowners. However, this momentum easily loses its heat as home prices continued to go up making it unaffordable by average- earning families.
