The average price of a home in California is inching closer to $1 million.
A report by the California Association of Realtors said people should expect to pay about $900,000 for a single-family home. KNX News’ Karen Adams Spoke to Jeff Lazerson from Mortgage Grader about the cost increase.
“I would think that at some point it's just going to hit some kind of a hard stop, but it sure hasn't yet. It just keeps going,” he said.
Lazerson crunched the numbers to find out roughly how much people would have to make to afford a single-family home.
“If you put 20% down on $900,000 and you had a 720 loan, your total payment would be about $6,072 a month for principal interest, taxes, and insurance,” he said. “And assuming you didn't have any bills, you know that you were, you were debt free. You would have to make about $13,000 a month or $156,000 a year to qualify for that loan.”
Lazerson warned people to not be surprised if homes in California hit an average of $1 million in a couple of years.
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