Friday, February 24, 2006

Welcome to Unaffordability, NJ!

The National Association of Homebuilders (NAHB) & Wells Fargo released their year end 2005 affordability study.

Indianapolis Recaptures Title Of Most-Affordable Major Housing Market At Year-End 2005

At the bottom of the affordability scale was Los Angeles-Long Beach-Glendale, Calif., where just 2.3 percent of homes sold in the fourth quarter were affordable to families earning the area’s median household income of $54,500. The median price of all homes sold in that area was an even $500,000. And as usual, the bottom of the affordability scale was dominated by large California cities, including Santa Ana-Anaheim-Irvine, San Diego-Carlsbad-San Marcos, and Stockton. New York-White Plains-Wayne, N.Y.-N.J. rounded out the list of the five least-affordable major housing markets.

The complete list by affordability rank (in Excel format) can be found here.

Caveat Emptor!
Grim

5 Comments:

Anonymous Anonymous said...

Inventory build up, bubble or no bubble, inflation, population growth or lack thereof..... all this talk doesn't mean a thing to me as long as I still see prices in the stratosphere. When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I'll say the market has turned.

2/24/2006 09:58:00 AM  
Anonymous Anonymous said...

"When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I'll say the market has turned."


We looked at a very old house last week, and it had the creepiest basement. Lying on the floor of the dark basement (the semi-working flourescent lights were at about 5% brightness) was a huge ax, a chainsaw, and weird holes in the foundation, like somone had buried something.

That was like living Friday the 13th!

We got the hell out of there!

2/24/2006 11:22:00 AM  
Anonymous Anonymous said...

Anon,

The price alone should make you shreik!!

2/24/2006 11:42:00 AM  
Anonymous Anonymous said...

An interesting home affordability calculator:

http://www.migginsrealestate.com/calc_afford.html


According to that, if you earn $200K a year, and have $120,000 in cash for a downpayment, and zero debt, you can afford a $750K house with $10K annual property taxes.

How many people buying $750K homes do you think earn $200K a year, 5%?

2/24/2006 04:16:00 PM  
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4/18/2006 09:43:00 PM  

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