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Blog: Home affordability in San Luis Obispo

Can You Afford to Buy a Home?

How Much Home Can You Afford?

Your search for the perfect home begins with its’ affordability. The amount of your salary is the largest factor that may come in to play. “The general rule of thumb is that you can purchase a home that costs two or three times your annual salary," says Harrine Freeman, a financial expert and the owner of H.E. Freeman Enterprises.

You can also find simple guidance in the 28/36 rule where your housing payment (mortgage, insurance, and taxes) should not be more than 28% of your monthly income (gross) and your debt to income ratio should be less than 36%. Your debt to income ratio is the comparison of how much you owe towards recurring monthly obligations, such as credit cards, loans….etc., in relation to how much you make in income.

Once you are in knowledge of your standing, as well as how much of a down payment you intend on putting down, you can figure out the maximum monthly mortgage payment you can afford. See our Simple Payment Calendar on the right side of our home page.

You are one giant step closer to finding the home that is perfect for you! With a proper understanding of your buying position you are ready to search the market! Contact our offices and any one of our brilliant agents that are poised and ready to answer all of your questions along the way and guide you into optimizing your position as a strong buyer in today’s market! 


Home Affordability in SLO

What do you need to make to buy a median priced home in San Luis Obispo County?

In a report put out by the Los Angeles-based California Association of Realtors, only a quarter of the residents in San Luis Obispo can afford a median priced home at $550,000. You would need to make at least $113,000 a year in order to pay the monthly mortgage payments of $2,830 which would include taxes and insurance. Statewide, 32 percent can afford a median-priced home at $496,620. 

But....don't get too depressed, our county is far more affordable than San Francisco (where only 13 percent of residents can afford a home), followed by Santa Barbara, San Mateo, Santa Cruz and Marin counties. We offer a quality of life here in SLO, that we feel is far more desirable and affordable in comparison.

Please contact San Luis Obispo Realty and allow us to assist you in finding a home in our popular area that is affordable to you! If you register on our site, you can have homes that are brand new on the market, emailed to you as soon as they are listed. We will keep you updated hourly.

If you want to list your home in this great San Luis Obispo market, let us assist you. Your home will be showcased on our site that is trusted and used by approximately 50,000 visitors a month and is the top rated real estate broker web site on the entire Central Coast. 

Home Affordability in SLO

San Luis Obispo - Improved Homeowner Affordability

2016 3rd Quarter showed homes were slightly more affordable in comparison with 2015 3rd Quarter

Median price for a single family home in California was $515,940. That means a family would need a minimum annual income of $100,290 to make the monthly payment of $2,510, including principal, interest and taxes on a 30 year fixed-rate mortgage at 3.76% interest rate.

31% of California households could afford to purchase a median priced single family home in 3rd Quarter/ 2016 versus 29% in the same quarter of 2015. 40% of home buyers were able to purchase a median priced condo or town-home. (The median being $418,230)

The most affordable counties in California were Kings County, Kern County, and San Bernardino County.

The least affordable counties in California were San Francisco County, San Mateo County, and Marin County.

Information Source: California Association of Realtors Q3 2016 Housing Affordability Index

Please contact San Luis Obispo Realty, to find homes, land, investment - commercial property, vineyard - winery property, or any type real estate that fits within your home or investment budget. We are always happy to do a FREE market analysis to help determine the relative affordability. We have expert real estate agents ready to assist you in finding your next dream home on the Central Coast of California.

and our Morro Bay Affiliate & second location

Morro Bay Real Estate Partner

San Luis Obispo Realty
441 Marsh Street
San Luis Obispo, CA 93401

CA BRE# 00577121


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