Buyers in San Diego need to take out a mortgage nearly four times their annual income in order to afford a home in the region according to a new report from Realtor.com. The conventional wisdom is that home buyers shouldn’t spend more than three times their annual salary on the price of a property but with San Diego’s expensive housing market, house hunters have much less leverage.
According to the report, Los Angeles tops the list of markets where home buyers must stretch their budget with median mortgages coming in at $485,000, compared to a median income of $124,000. San Diego ranked second in the nation with a median mortgage size of $455,000, with median borrower income of $125,000. Three other California regions made the top ten as well.
At the bottom of the list of leveraged buyers was Pittsburg where median mortgages were just $155,000 while buyers brought in $76,000 in annual income.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.