Fewer than 1 in 5 homebuyers in California – around 16% – can afford to buy a mid-priced existing single-family home in the Golden State, according to new data released by the California Association of Realtors. The study found a medium-priced home in California was estimated at $830,620. Additionally, data revealed housing affordability in California hit a 16-year low in the second quarter of 2023. By comparison, the percentage of homebuyers able to purchase a medium-priced single-family home was 56% in 2012.
This all comes as interest rates continue to hover above 6% and home prices remain high due to a shortage of homes on the market, analysts found. The trend of Californians looking to leave the Golden State in hopes of finding more affordable housing options elsewhere seems to be alive and well, according to a recent study from Redfin. The online realtor website found that a record number of users are looking to other states in hopes of finding affordable home prices. From April to June 2023, about 25.5% of Redfin’s two million users, or 510,000, have looked into relocating.
The report was based on an analysis of about two million Redfin users looking for homes for sale in more than 100 meter areas from April to June.
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