In California, property values are still on the decline. However, that’s not all bad according to a Mercury News report released earlier this week which determined that more than half of all households in the state can afford to own a home at today’s prices[1]. Of course, that assumes that they have the money for a 20 percent down payment. “Assuming that household had a 20 percent down payment,” speculated the author, “it would have needed $117,630 in yearly income to qualify for a mortgage for a $545,000 home [in Santa Clara County].” That means that 37 percent of all households in the state would be eligible based on annual income. The numbers vary depending on the area of the state – San Francisco only is affordable to about a quarter of citizens, while Central Valley is affordable to 71 percent – but statewide 53 percent of households could afford a median-price house[2].
Of course, the assumption of that down payment amount is a pretty big one at this time, but many different associations and entities – the White House included – are touting housing affordability as one of the great advantages of this period in history. Do you think that increased housing affordability is a significant factor for most people in today’s housing market?
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[1] http://www.mercurynews.com/top-stories/ci_18050938?nclick_check=1
[2] http://assets.bizjournals.com/losangeles/news/2011/05/12/california-housing-affordability-at-53.html
“Of course, the assumption of that down payment amount is a pretty big one at this time, but many different associations and entities – the White House included – are touting housing affordability as one of the great advantages of this period in history. Do you think that increased housing affordability is a significant factor for most people in today’s housing market?”
Only a moron would think that this is an advantage in today’s market! Affordability is a function of people being able to get a loan and support the loan! When the price of everything they need like Food, Clothing and Gasoline is going up, quickly, supporting a loan becomes harder and harder. That is not affordability!
Banks are buying government paper, instead of making loans to the masses, and as long as we have the increasing taxes, fees, and deficit spending by the governments of our country, the banks will not be willing to make that many loans to the people, hence lack of affordability!
Just because some idiots like to move numbers around, just because Obama and his crew live in fairy tale land, does not mean the economy is getting better, unemployment is getting better, or people are more able to purchase large ticket items.
We are on the edge of a cliff with one foot hanging off and only a few toes of the other foot on anything, if this is not addressed in the next month or two, it will not matter what housing sells for or what kind of lies are told us about how well we are doing as a country!
Time to get more people’s heads out of the sand and look around at what is happening, not just here but abroad, it is not good, only the blind of heart and mind would think it is!
Chris
Chris’ comments are right on the mark. There are more Americans awakened, aware of the peril facing our Republic, and engaged in working to turn the situation around (Tea Party / 9-12 Project movements) than traditional conservative America has ever seen before. That being said, I’m not confident that the numbers are as yet substantive enough to save the day, and the clock is ticking. I can only encourage all red-blooded, liberty loving, patriotic Americans to get personally and actively engaged in these movements, for methinks it the last possibility for restoring sanity and good governance. The Democrat Party is gone, having been firmly brought under control of outright socialists. The GOP has repeatedly proven itself unprincipled and gutless (at best), and cannot be relied upon (the opinion of this lifelong Republican) to turn the tide. It’s only going to happen if “The Awakening” is not only sustained, but accelerated, and a much larger component of the Silent Majority brought to the point of political activism. That is the challenge. Don’t just bitch about things to like-minded friends. Get actively engaged with groups working to make a difference. Americans will need to take their government back from the combined anti-American / anti-capitalist / corrupt / incompetent / and / or philosophically misguided elements that currently hold the reigns of power in both parties in Washington, the only vibrant (thanks to endlessly expanding government) real estate market in America. And don’t allow yourself to consume your time with things that make you feel good (venting to others / attending rallys and political seminars) but do not contribute to the bottom line. And the bottom line is election results.