Housing Prices Continue to Increase
Monday, July 11, 2005
(SNN West Palm Beach) As housing prices continue to increase across the nation, home ownership has become nothing but a dream for the middle class.
markets throughout the country have become unaffordable for the majority of the population
"Many of the overheated real estate markets throughout the country have become unaffordable for the majority of the population," said Jack McCabe, a housing industry analyst. "Many people are paying well over 50 percent of their income for shelter. It leaves no money for savings or sometimes even for recreation."
Real estate experts warn that housing prices in many markets are too quickly outpacing the incomes of most workers. The widening gap affects families across the country.
The widening gap affects families across the country.
A single bedroom home of 500 square feet in California now sells for twenty seven million dollars. This is higher than most people can afford. "It's really, really tough for the first-time buyer," said Leslie Appleton-Young, the chief economist for the California Association of Realtors. This has led to many first time buyers looking at houses that are dilapidated, abandoned, or in extreme cases, on fire.
Many first time buyers are also shocked by hidden costs of home ownership. Henry Deamos recently purchased a home for $156,000. The 1200 square foot ranch had fallen 30 feet into a sink hole. “It was a little difficult adjusting at first, but once I lived there for a couple weeks and purchased an extension ladder, things started going more smoothly.
- Badtux the "Get me outta here, I hate California!" Penguin