California Official Can’t Afford to Buy Home, Slams ‘Insane’ Housing Market – Newsweek

3 minutes, 17 seconds Read

A city councilman in Newark, California, quit his role after being “priced out” of buying a home in the city and he lamented the struggle that working people face to afford purchasing property in the area amid expensive mortgages.

In a Facebook post, Mike Bucci said he decided to resign and move from Newark because he could not afford to buy a home there.


Buy/sell, rent/lease residential &
commercials real estate properties.

Read more: How to Calculate How Much House You Can Afford

“We’re just the next people in a long line of folks who have been priced out of town. We tried to buy a home a number of times over the years but it never happened for us,” he wrote in a post on Facebook. “Now the window has closed and any chance we had to stay in Newark is long past.”

Newsweek reached out to Bucci for comment via email on Tuesday.

Bucci, who has served in Newark’s City Council for about a decade, according to his LinkedIn account, said despite both him and his wife working, they would struggle to pay for their mortgage in the area.

Read more: How Much Down Payment Should You Put Down for a House?

“The most insane part is that even with 60 [thousand dollars] down and a 785 credit score we can’t get into the cheapest house in Newark for less than $7500 a month,” he said. “If I put my entire Millwright and council salary towards it every month, it’s still not enough. I just turned 47, what am I going to do, take out a huge mortgage that won’t be paid off until I’m 77? That’s not a real option.”

Newark, a city of about 47,000 people, has seen home prices soar in recent years. According to Redfin, the median sale price of a home has hit $1.4 million, a staggering 15 percent rise from a year ago. The high prices, along with mortgage rates hovering around 7 percent, have made it a challenge to afford to buy a home in the area.

“The Newark housing market is most competitive,” the real estate platform said. “Homes in Newark receive 8 offers on average and sell in around 8 days.”

Read more: First-Time Homebuyer Guide

Redfin added: “Most homes get multiple offers, often with waived contingencies. The average homes sell for about 9 [percent] above list price and go pending in around 8 days. Hot homes can sell for about 17 [percent] above list price and go pending in around 7 days.”

housing
A housing development in Newark, California, as seen on December 15, 2021. Newark City Council Member Mike Bucci resigned after not being able to afford a house in town.
A housing development in Newark, California, as seen on December 15, 2021. Newark City Council Member Mike Bucci resigned after not being able to afford a house in town.
Justin Sullivan/Getty Images

Bucci said that if a family like his can’t afford to buy property in the city, then the outlook for working people in the area is less hopeful.

“If we can’t do it how are other working class folks ever going to do it? What chance does the next generation have? What chance will any of them have to stay in the communities they love?” he wrote.

“This has been a very difficult decision for us and even though it’s the best path forward for our family, it doesn’t make it any easier. I had dreams of becoming a great mayor…and doing big things for our city.”

Bucci’s resignation has left an open seat in the city council.

“The Newark City Council is seeking qualified applicants to fill a vacancy caused by the resignation of Council Member Mike Bucci. The appointee will serve until a person is elected at the November 5, 2024, election and after the election results are certified,” the council said in a press release.

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

This post was originally published on 3rd party site mentioned on the title of this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×