San Diego Loan Officer
Explains Why The Median Home Price Does Not Affect The
Diego first-time home buyer financing specialist Mark
Harmon explains why the high median price of a home in
San Diego should not be a concern to local first- time
San Diego, CA October 21, 2007 –
Loan Officer and Realtor Mark Harmon explains in detail
why the median San Diego home price, which is often
cited as being the main reason for unaffordable housing
in San Diego, actually has very little influence on
local first-time home purchases.
It is a well known fact that the
median home price in San Diego is nearly $600,000. The
high median home price is often cited as being the main
reason that San Diego is unaffordable for first time
Taken at face value, the statement
appears to make sense. Upon further examination however,
that statement proves to be incorrect and very
The major reason that the statement
misses the mark is that first time home buyers almost
never buy homes near the median price. The median price
does not apply to them at all. First time home buyers
are buying homes priced much lower than the median.
Typical San Diego first time home
buyers purchase condos in the range of $200,000 to the
low $300,00’s. Houses bought by San Diego’s first time
home buyers are normally priced in the low $400,000’s.
It is rare for a first-time home buyer in San Diego
County to purchase a home near $500,000. An important
point to remember is that first time home buyers are
purchasing starter homes, not their dream homes.
The median price is defined as the
price point at which half of the homes are sold above
and half are sold below. First time home buyers normally
purchase nowhere near the median price. A price point
that is much more indicative of affordability for first
time home buyers would be the median price of home in
the overall lower half of home prices.
Other factors that make homes
considerably more affordable than many renters think are
the tax advantages of owning and the increased
availability of first time home buyer assistance
programs. The tax advantage can typically put an extra
$200 to $400 of additional after-tax money into a new
home owner’s pocket every month.
First time home buyer financial
assistance programs enable nearly any renter with
reasonable income, responsible use of credit, and a
little money saved up to become a home owner.
The real concern for the first time
home buyer should not be the median home price but what
overall payment would the buyer feel comfortable with
and whether any acceptable homes are available in that
About Mark Harmon:
Mark Harmon has been a loan officer
since the year 2000. His specialty is first-time home
buyer assistance programs in San Diego County.
Mark Harmon, Loan Officer and
USA Realty and Loans, Inc.