SacBee: Rising home prices in California concern economists, prompt action by lenders

Housing affordability – or more precisely, the increasing lack of it – in California has prompted growing concern among economists and segments of the residential real estate industry. Sung Won Sohn, a professor of economics at California State University, Channel Islands, said last week that “the average person, especially in the Bay Area and Southern California, is essentially priced out of the market. The only way they can buy a home is with a high-paying job or their parents helping them out.” The former chief economist for Wells Fargo added that “the importance of housing in California is greater … than it is elsewhere. California is very real estate-dependent and it’s a very important part of the economy. Home ownership is tied to economic growth. Just think of the spending related to owning a house – on shrubs, glass, tile, carpet, appliances, furniture and more. A lot of spending is dependent on housing.”