Posted on 01/08/2005 8:18:52 PM PST by Citizen James
California is now home to the 11 least-affordable housing markets in the entire nation, according to a new report, the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
"It used to be that California dominated the 'bottom 10' list of least-affordable metropolitan areas. Now we are the bottom 10 -- and then some," said Robert Rivinius, chief executive officer of the California Building Industry Association. "What's worse is that even in California's most affordable market -- Tulare County -- less than half of the county's residents can afford a median-priced home."
The index found that during the third quarter of 2004, 19 of the bottom 25 housing markets nationally were in California. And of the 43 least affordable markets in the nation, more than half -- 25 -- were in California.
The least-affordable market out of 162 metropolitan areas nationwide was Santa Barbara County, where a family earning the median income could afford only 4.9 percent of area homes. The next four least-affordable areas were San Diego County, Monterey County, Los Angeles County, and Orange County.
In comparison, the NAHB survey found that in the nation's most affordable market, Lima, Ohio, 90.5 percent of homes sold during the third quarter of 2004 were affordable to families earning the area's median income.
The median price for a home in Santa Barbara County in November 2004 was $668,750, according to the California Association of Realtors. At the same time, the median priced home in Lima, Ohio, was $66,722.
Among larger metro areas nationwide, the most affordable were Grand Rapids, Mich., where 86 percent of the homes were considered affordable, and St. Louis, Mo., where the affordability rate was 83.7 percent, the report said.
The Housing Opportunity Index calculates the share of homes sold in an area that would have been affordable to a family earning the median income. For income, NAHB uses the annual median family income estimates for metropolitan areas published by the Department of Housing and Urban Development. NAHB assumes that a family can afford to spend 28 percent of its gross income on housing, a conventional assumption in the lending industry. That share of median income is then divided by 12 to arrive at a monthly figure. On the cost side, the monthly principal and interest is based on a 30-year fixed-rate mortgage with a 10 percent down payment. The interest rate is a weighted average of fixed and adjustable rates during that quarter. The cost also includes estimated property taxes and property insurance.
Homeownership is the American dream... could be the American nightmare too if you don't keep up with the mortgage payments *LOL*
Yep I agree about the kick ass part! LOL
It's funny - I'm only 40, but after getting pneumonia a couple years ago, I've lost all ability to deal with cold, wet weather. It never bothered me much before, but I can't stand it now. I'm moving to Las Vegas in a couple of years - in the winter 32 degrees and dry there feels much warmer than 45 degrees and damp in the San Francisco area. 110 degree summer days, on the other hand, don't bother me at all.
I suspect others feel the same way, and the trend for real estate prices in Southern California, Nevada and Arizona will continue on a steady upward course.
Yes, I've had problems with the Commie Condo Club myself.
What kind of person runs around the neighborhood with a notepad jotting down things others do that annoy them!?
Well well well, another idiot stands up to be counted. F U
I have no idea. My husband did work about an hour away. He got a new job a year ago, and only works about 20 minutes away.
We also went with a variable interest rate, something everyone said we were nuts for doing. We started at 7% when fixed was at 8%. We are at 3.85 right now. Would have been lower but it can only move a point a year.
I cannot imagine how some are paying those outrageous mortgages and not chewing on the wallpaper for supper...
I'm not in real estate biz; but I've observed the CA RE markets for 30 years -- I perfectly concur with your assessment and analysis. It does rise even higher each time, after hitting a stall, maybe even a downward slope.
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