Sdrealtor, I really hope you’re right. I make a fair amount over the median income, and all I can really afford on a conventional 30yr loan is about $2500/month max. With PITI, HOA and/or Mello Roos combined, that puts me around $300k & I need at least 3bdrms.
I grew up here, moved away for a few years and owned a couple homes out of state. I thought I wouldn’t mind renting as long as I was back home, but I miss owning a lot more than I expected. Renting sucks (especially when you have kids). I love it here, and I really want to stay, but if there isn’t reasonable housing available at a realistic price in a couple years, I’m leaving CA for good.
Let’s hope there really will be new banking rules (with teeth) soon to stop the madness on the exotic loans, and bring first time home-buyer back into the market with a mortgage they can live with.
