Bay Area Housing Market Continues to Push Out Middle-Income Buyers
SAN JOSE (CBS SF) -- A new study by U.C. Berkeley's Terner Center for Housing Innovation found that middle-income earners in the Bay Area represent a shrinking share of the homebuying market compared to a decade ago.
"We would show up at open houses and it would be packed," said Jim Bustamante, a first-time homebuyer who was nearly squeezed out of market. The Bustamantes tried unsuccessfully to buy a home for two years before finally securing a townhome in South San Jose.
The red-hot housing industry is quickly pricing many families out of the market. In March, the median sales price for a single-family home, condo or townhome was $1.43-million in Santa Clara County. Buyers, on average, paid 16 percent over the asking price. And homes were snapped up in a week or less.
"It can almost disillusion a buyer into thinking, 'Oh my goodness, there's no way I can compete with some of these buyers," said Brad Gill, owner of NextHome Lifestyles.
Gill, however, said that potential homebuyers need not despair. His team worked with the Bustamantes for two years while they saved money and improved their credit to put themselves in a better position to buy their first home.
"You meet people, they're starting out and you want to walk them through the homebuying process. And part of that is uncovering what's going on with their finances," said realtor Wajiha Tareen.
