By Estephania Baez
A study by a California real estate firm found that San Diego is the most expensive U.S. city for buying a home. According to the report, the minimum income required in order to qualify for a home loan is $90,000 a year. However, statistics show that San Diegans earn about half that on average.
San Diego economists attribute this in large part to the economic situation the United States went through in 2013, which had a direct impact on California housing development in 2016, with home prices increasing by 20 percent statewide. Home prices rose at an even higher percentage within San Diego County.
“One of the key reasons why housing prices have gone up is the low interest rates in past years, as well as the fact that people in California started having more than one source of income,” explained real estate consultant Luis Carranza.
Lack of education and information about housing are among the biggest issues. For example, the majority of U.S. Veterans do not know about the programs that exist for them to get their own home, and most people are also unaware of the benefits they may qualify for. Therefore, the biggest recommendation is to get informed about housing and loans.
“People who have trouble getting a loan, getting a home, do so mostly due to not knowing the logistics of how buying a home works, such as pre-qualifying and how to navigate the process. We recommend for both residents and foreigners to seek expert advice when buying a home,” added Luis Carranza.
In spite of the increase in home prices, specialists have not seen a fall in sales; however, specialists will remain vigilant to keep people from putting their assets at risk.