Castro Valley, CA (PRWEB) December 05, 2014
Early in November, the California Association of Realtors® (CAR) released housing affordability numbers for the second quarter of 2014(1). The Housing Affordability Index (HAI) tracks the percentage of households that can afford a median-priced, single-family detached home assuming current interest rates and 20% down. The median home price is the point at which half of the houses sold for more and half sold for less. From the first to second quarters of 2014, the HAI fell from 33% to 30%.
“In the 1980s, Californians couldn’t afford to buy a home because interest rates were in the double digits. Today, home prices are going up while access to credit is going down,” explained Murline Monat, a Realtor® specializing in Castro Valley Neighborhoods, CA. “California homes are just too expensive for Millennials,” continued Ms. Monat in reference to what is the largest, and newest, generation of home buyers.
In early 2012 when an annual income of $56,320 would purchase a median-priced house, California affordability peaked at 56%. Today, the required annual income is $93,590 – that is an over 60% increase in two years. “The problem,” said Ms. Monat “is that income growth in that time has been in the single digits.” Homes for sale in Castro Valley can typically include those in the Columbia Community.
“What we really need is more construction,” argued Ms. Monat. Studies estimate that California’s current market could easily fill 250,000 new owner-occupied or rental units; current construction, however, is far from meeting that demand. Despite the demand, California is issuing fewer building permits for both single-family and multi-family housing because builders are also suffering from higher costs and less credit.
Ms. Monat concluded, “Many people believe that California’s housing issues will work themselves out. Given enough time, this is true. The question becomes: can the rest of California’s economy survive the wait?”
A long-time Bay Area resident, Murline brings a wealth of knowledge and experience to her realty career – including an M.S in Industrial Psychology, building her own home, and group facilitation. Her background makes her an excellent champion for her clients. By ensuring her clients are appropriately informed throughout the purchasing or selling process, coordinating all the parties involved, and negotiating the best deal, Murline’s reputation in the community and realty industry is impeccable.
Before becoming a realtor in 2009, Murline Monat spent her time analyzing sales trends for both large corporations and small businesses. The difference between retail sales trends and real estate trends are minimal and she is able to support her clients in one of the most important lifestyle choices they will make. These decisions “bring great comfort and satisfaction to individuals and to families. I love being a part of that process.”
A Bay Area resident since the age of 5, Murline and her husband made Castro Valley their home because of its central location for both of their careers at the time. While a practical choice, the decision to live in Castro Valley has always been a happy one.
Empire Realty Associates, Inc.
Danville, CA 94526