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California Screamin'


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June 30, 2005

California Screamin'

Chris Palmeri

The California Association of Realtors http://www.car.org put out its mid-year forecast this week. They figure the median home price will hit a record $523,150 in 2005, up 16% from 2004’s record of $450,990. The Realtors also project that the percentage of the state's population that will actually be able to afford a median-priced home will fall to 16% from 20% last year. In other words only one out of every six Californians will be able to buy a typical home in the state. The minimum salary needed to qualify under conventional loan terms: $115,000 a year. Incidentally, the last time that affordability index fell below 20% was 1989, shortly before California housing prices crashed.

01:07 PM

Housing Prices

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"They figure the median home price will hit a record $523,150 in 2005"

What is the recent situation in California? Were they right on their prediction?

Here in Miami the market is very slow.. No buyer..

Tracy

Posted by: Tracy - Real Estate Agent at August 12, 2006 03:34 PM

In my area,LA and San Bernandino,starting to get very slow in real estate .Also,there are a lot of price cutting in new homes, and existing homes to a lesser extend.

Posted by: stanley at August 14, 2006 06:14 PM

San Diego is crashing big time.

Posted by: Aiden at August 18, 2006 11:32 PM

Luckily, just at the beginning of a historic crash CAR has redefined the way it calculates the affordability index! How conveeeeeeeenient! It now shows that more of us can afford $800 fixers on our $85K incomes by using lower down payments and hokey financing. Good thing too. WE can all rush down to the bank tomorrow and get a loan to catch a falling knife!

Posted by: Dave at August 20, 2006 02:18 AM


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