Friday, February 11, 2011

OMG they still don't get it!

The California association of realtards STILL thinks it's ok to buy a home that costs 6 time your annual income!

Historically low interest rates and a slight decline in home prices in the fourth quarter of 2010 meant that the percentage of first-time buyers who could afford to purchase an entry level home in California rose to 69 percent, up from 66 percent in the third quarter and 64 percent a year earlier.

The report from the California Association of Realtors showed that in the last three months of 2010, 82 percent of first time buyers in San Bernardino County were able to purchase an entry-level priced home of $138,050. They needed a minimum household income of $21,300 to qualify. (that's 6.5 times income)

In the fourth quarter in Riverside County 79 percent of first time buyers could afford a home. They needed a minimum income of $25,200 to buy an entry-level house of $163,010.(also 6.5 times income)

The most affordable region in the state was the High Desert, where 85 percent of first -time buyers could afford an entry level home of $106,320, for which they could qualify with an annual income of $16,500. (also 6.5 times income)

Seriously, the realtards are still trying to convince people to spend double the traditional levels on housing. How the hell is anyone making 25K a year gonna afford a $163k house? These people are bringing home about $1500/mo. Subtract utilities, food, transportation and what is left to pay a mortgage? I'd love to see just what they used to come up with these numbers.


Snail said...

How much just for the house with out the furnitures

William said...

How would anyone with that kind of income get approved for a mortgage in todays market? Sounds like these agents may cause people to waste alot of mortgage brokers time!