This is what a $300,000 homebuying budget will get you in California (2024)

FAQs

This is what a $300,000 homebuying budget will get you in California? ›

In the Golden State, the average cost of a home is $744,023, reseachers found. Experts with the California Association of Realtors found that the median price per square foot is $373. Those with a budget of $300,000 could only buy 804 square feet.

California's median home price hits record high at $900,000, realtors association says. It was the first time the median price for a dwelling in the state had reached such an astronomical level.

Requirements to buy a house

A good credit score. Lenders typically look for a score above 650. Some lenders will accept lower scores based on the loan program and the borrower's debt-to-income ratio.

The closing cost percentage for buyers in California accounts for 2% to 5% of the total purchase price. The exact closing costs depend on the type of loan, home value, sale contingencies, and local laws. You can ask for seller credits or concessions, negotiate with your lender, or opt for a no closing cost mortgage.

Three of the five cities where homes were being sold above price the most were all in California. San Jose saw more than 69 percent of properties purchased at above sticker value with San Francisco at nearly 63 percent over the initial announced price and Los Angeles at 49 percent.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

Many said they'd moved because of the rising cost of living, especially housing that felt increasingly unaffordable. Some left to be closer to family, a priority during those isolating early pandemic years.

Why do the rich live in California? ›

Tax Role. California's sunny climate, first-class universities and access to Silicon Valley and Hollywood has long made it a haven for wealthy people who play an outsized role in the state's economic fortunes. Its progressive tax system relies on the top 1% of earners for roughly 50% of personal income tax revenue.

California home buyer stats

"Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620. If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all.

As a rule of thumb, personal finance experts often recommend adhering to the 28/36 rule, which suggests spending no more than 28% of your gross household income on housing. For someone earning $70,000 a year, or about $5,800 a month, this means a housing expense of up to $1,624.

You need over $100,000 to afford that home, but the median household income in the region is about $68,000. It's anything but normal. The fact that we've hit a new record high is actually worth noting because it means affordability is eroding and has been coming down for some time.

To determine whether you can afford a $650,000 home you will need to consider the following 4 factors. Based on the current average for a down payment, and the current U.S. average interest rate on a 30-year fixed mortgage you would need to be earning $126,479 per year before taxes to be able to afford a $650,000 home.