In one of this week’s columns we talked about how home prices in North County San Diego seemed to be appreciating at a somewhat higher rate than in other areas of San Diego County. And though this is an interesting and potentially good trend, as with all such trends, it does not tell the whole story.Let’s take a look at who can now afford to buy a home in San Diego County.
This graph , provided courtesy of the North San Diego County Association of Realtors, shows that about 35% of the population in San Diego County are able to afford a median priced home in San Diego. In North County this affordability index drops to 28%. Contrast that affordability to 44% in East County San Diego, 40% in South San Diego County, and 34% in Metro San Diego.
Affordability is the way we measure how much a person can generally afford to buy, including financing, taxes, and insurance, and is affected not only by housing prices, but also factors like employment. As you know, wages in San Diego have been steady, and are generally lower than in many other parts of the country. (See Sunshine Tax).
So, it seems that if you want to take advantage of the rising prices in North County San Diego, you probably should be among the 28% of San Diego County’s residents who are able to foot the bill. If you are a homeowner who is looking to list and sell your home, then let’s talk about where and how to find these qualified buyers.