$92K DOWNSTROKE TO BUY A MEDIAN PRICED HOME---IS THIS A GREAT COUNTRY OR WHAT?

Not one young person in a thousand can buy a home in California. Maybe it's one in 5,000. California's Housing Affordability Index falls eight points in May to lowest level since 1989. Only 11 % of people in metro SoCal can afford a median price home. Goes to 35% in the oven temps of Riverside and 55% in such garden spots as Bakersfield. The American dream fades for many, which was the Edwards campaign. Info from CA assn of Realtors.

LOS ANGELES (July 8) – The percentage of households in California able to afford a median-priced home stood at 19 percent in May, an 8 percentage-point decrease compared to the same period a year ago when the Index was at 27 percent, according to a report released today by the California Association of REALTORS® (C.A.R.). The May Housing Affordability Index (HAI) declined one point compared to April, when it stood at 20 points.

C.A.R.’s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.

The minimum household income needed to purchase a median-priced home at $465,160 in California in May was $108,450, based on a typical 30-year, fixed-rate mortgage at 5.77 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $84,600 in May 2003, when the median price of a home was $367,630 and the prevailing interest rate was 5.62 percent

The minimum household income needed to purchase a median-priced home at $183,600 in the U.S. in May 2004 was $42,810.

At 46 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 29 percent. The Santa Barbara region was the least affordable region in the state at 7 percent.

C.A.R.'s June 2004 sales and median price report for the state and regions within the state will be released on July 26.