This year, prices of homes have become consistently affordable in a county, making homes more affordable for hopeful homeowners as it reaches near-records low, while contributing to the increase in rents.
In April, the average home price in the county reached $451,470 as the number of houses for sale reached its second lowest-point within 20 years with a 29% of homes considered as affordable during the first 3months of the current year. This was a slight increase from the previous year based on an official database of realtors.
The affordability factors in a monthly mortgage payment of $2,300, including the insurance and taxes, and $92,170 minimum qualifying income. Home affordability varies per county as one has 22% listed affordable homes, while the neighboring county with 30% affordability. Statewide, there are 34% homes considered as affordable, up by 1% from last year, attributable to low mortgage interest rates.
Amongst the biggest reasons for home price rising is the lack of houses for sale, according to the county’s association of realtors. There were a total of 755 for sale homes in April and in the county alone, which was the second lowest in 20 years.
Technically, it is now cheaper to purchase a house in Seaside as rising home prices in other parts of the county appear to have negative effects on the working class renters. According to the Housing Authority of the county, the competition for houses and units is getting fierce very quick. The Housing Authority director, said rents are certainly skyrocketing, making hard for people to look for affordable units to rent.
On April 29, the agency held a summit meeting, encouraging landowners to accommodate low-income renters. The decisions of the landlords and how many of them would agree are still pending. Otherwise, the authority will give more attention to affordable housing.
In the early fall or late summer, the Housing Authority will also hold a lottery for the Section 8 funds. This will be the first ever dispersal of funds since the year 2008, the housing director said.
The housing director also explained that renters within the Monterey Peninsula should also compete with the Army or Navy service members who are accommodated and receive a housing allowance from the Department of Defense.
Based on ranking, the lowest-paid individual without any dependent is able to receive $1,428 per month, only for housing, while those with dependents are able to receive $1,902, according to the department. Meanwhile, the highest-ranking individual with dependents receives $3,561 per month for housing, while $2,982 for those without dependents.
Based on official records, the price of an average 2-bedroom apartment or unit costs $1,330 a month, an indication of a 15.6% increase from the previous year.
The Housing Authority is now awaiting the response of landlords within the area, considering that they would open up their properties to those with low income so as to accommodate their housing needs. If not, the authority will decide on other choices, most likely basing the decisions on the Section 8 housing.