Soaring home prices in California haven’t deterred first-time buyers from entering the market in record numbers, and many of them are going to extraordinary lengths to dive in, according to a study released Thursday.
Californians are increasingly sinking more than half their incomes into mortgage payments, taking on enormous debt, forgoing down payments and signing interest-only or adjustable-rate mortgages, according to the study by the Public Policy Institute of California. Although California still lags behind most states in terms of home ownership, the buying frenzy has lifted it to its highest level — 59 percent — since 1960, the study found.
What is the most fundamental rule of making money? Buy low, sell high. So, if prices are at all time highs, what does this rule suggest is the correct thing to do if you wish to profit?