The San Francisco Business Times reports that housing affordability for first time homebuyers has gotten worse, not better, some highlights:
The percentage of first-time buyers in California able to afford a median-priced home stood at 24 percent in the third quarter of 2006, compared with 28 percent for the same period a year ago, according to a report released Monday by the California Association of Realtors.
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In the Bay Area, the minimum household income first-time buyers needed to buy a median-priced home of $627,560 was $129,640, based on an adjustable rate of 6.58 percent and assuming a 10 percent down payment. The monthly payment, including taxes and insurance, would be $4,320.
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Alameda County affordability was at 24 percent in the third and second quarters of this year, down from 27 percent in the year-ago third quarter…
Almost $130K combined income is needed in order to purchase a home in the Bay Area, and with the prospects of housing affordability looking to get worse and not better, just who are we shutting out of the “American dream” of home ownership with our reactionary housing policy? When we think about first time homebuyers, it’s not just the young professionals looking to get into a starter home to build equity. First time homebuyers are folks of all shapes and sizes — the immigrant family that has scrimped and saved enough for a down payment, the young couple looking to build a life, the lifelong renters who are ready to take that next step…our neighbors, friends, and family. Moving forward in Alameda, let’s be thoughtful about how we can both preserve the qualities that we appreciate about Alameda, but also plan to provide the next generation of homeowners with a diversity of housing opportunities.
So willy and his celebrated 140K per year CAN buy a home after all.
Comment by dave — November 30, 2006 @ 6:13 pm