It’s no secret that CA home prices in the major metropolitan area are soaring above pre-recession prices. It is a challenge for first time and single home buyers. Economics 101 – when demand is higher than supply, prices go up.
This is NOT good news for many who are wanting to own a piece of the American Dream. Fortunately AND unfortunately, the strong job markets in these metropolitan areas keeps drawing people to these areas and keeps them working, but the prices of homes can be out of their reach. Is this going to change? Only time will tell…
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Buying a first home in California can be a daunting task, as the average home price is roughly two-and-a-half times the national average in the Golden State. With home prices in much of L.A. at pre-recession levels, or exceeding them, first-time buyers are struggling to break into the market. They must often put down big down payments or even full cash offers. They have to agree to the seller’s terms, such as a long — or short — escrow period. Compounding the problem, wages have not kept up with home prices, both for renters and homeowners. The California Environmental Quality Act, also known as CEQA, has also affected development and the availability of supply.
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