Housing good in Inland Northwest

Be glad you are living in the Inland Northwest. Why? A trip down to the Coachella Valley in California can be very interesting because the affordable homes are in short supply. That’s because most people don’t have the money to buy a home there.

In 1993 in that desert area, home buying peaked at 48 percent of local households that could afford a home in the valley. That made California’s Coachella area among the most affordable for only 11 percent of area residents.

Today, about 32 percent of first-time buyers could afford a $300,000 median- priced home, according to the California Association of REALTORS®. Home prices have shot up so fast they are well beyond the average household in the area.

Experts in the area say the future growth of the valley is a stake. And there is more. Rising home prices have made it harder for employers to attract skilled employees. That can be big.

Monthly payments for a home in the Coachella Valley are about $1,919 and seem to be heading to higher figures. There is a big difference between rising prices on homes and just renting. According to the REALTORS® group, a first-time valley buyer needs a minimum annual household income of $62,000 to purchase a $300,000 house with a 10 percent down payment.

The Desert Sunday newspaper said the trouble is, according to federal and state figures, the valley’s median income is about $46,000.

What does all of this mean to those of us living along the Spokane River?

We could say the citizens of this area have a pretty good housing picture. The average sale price of a home purchased in Spokane during February was $203,069. That is about half of the price of the housing in the area around Palm Springs.

And what could you do with the extra $100,000 you might have on hand for other purposes?