Do you see anything wrong with this picture? We have the HousingWire reporting, “Despite the growing prominence of low down payment mortgages, first-time homebuyers believe they need to put 20% down to compete in today’s market, but it’s not true given current market conditions, according to real estate agents across the country.
“Redfin conducted a survey between Sept. 15 and Sept. 18, receiving responses from 762 real estate agents in 38 states and Washington, D.C. The results found that more than half of the real estate agents surveyed said the typical down payment for successful buyers in their market was less than 20%.
“In fact, one in four said a down payment between 3% and 5% was typical among successful buyers.”
Then there is this story from LAWeekly, “The median home price in Los Angeles has jumped to $615,000, according to real estate website Redfin. The median individual income in the county is $27,987. It takes nearly a six-figure salary to buy a lower-priced home in this market, so you can imagine the financial ingenuity required to make even a median-priced house work for most L.A. families. Like a low 3% to 5% down payment?
“Mortgage stress is generally when a homeowner’s mortgage repayment is more than 28 percent of their gross income,” the site explains. It looked at the percentage of median household income that average mortgage payments consume in each of those 100 metros.
Anything wrong with this picture? Why do we have a surge in homelessness in Los Angeles? As the LA Times reported “Homelessness increased in the last year in the city and county of Los Angeles, leaving nearly 47,000 people in the streets and shelters despite an intensive federal push that slashed the ranks of homeless veterans by nearly a third, according to figures released Wednesday by the Los Angeles Homeless Services Authority.
“Nearly two-thirds of the homeless people tallied countywide, or 28,000, were in the city of Los Angeles, representing an 11% jump in January from a year earlier, a report from the agency stated. The county’s homeless population grew 5.7%.
“Homelessness has increased steadily since 2013, as local officials struggle to identify funding for billion-dollar plans they approved this year to solve one of the region’s most intractable problems.”
How can the price of housing in LA and other cities keep rising if we are running out of folks who can afford these prices on their middle-class incomes? Now, may be an opportune time to call us.
Coal to Cash Homebuyers, Inc. is a cash buyer solution. We are here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 805-426-9988