California Problems

The CAR reports that "The percentage of households in California able to afford a median-priced home stood at 16 percent in July, a 3 percentage-point decrease compared with the same period a year ago when the Index was at 19 percent. The July Housing Affordability Index (HAI) was unchanged from June, when it also stood at 16 percent."

And, it is interesting to note the income required to buy in California:
"The minimum household income needed to purchase a median-priced home at $540,900 in California in July was $125,670, based on an average effective mortgage interest rate of 5.73 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $109,170 in July 2004, when the median price of a home was $461,760 and the prevailing interest rate was 5.93 percent."

This is compared to stats for the U.S. in general:
"The minimum household income needed to purchase a median-priced home at $218,000 in the U.S. in July 2005 was $50,650."