Second of all, someone rich please buy me a home. Thank you.

Record low for home affordability in California

SAN FRANCISCO (Reuters) – Soaring prices in California’s housing market have shut out a record 86 percent of households from buying a typical home with a traditional down-payment, according to a study released on Thursday.

Home prices across California have more than doubled since late 2001, increasing pressure on home buyers, who needed a minimum household income of $133,800 to buy a home at the August median price of $568,890, the California Association of Realtors said in its report.

That meant that only 14 percent of households could afford the typical home, down from 18 percent a year earlier, and the lowest level since records began in 1989, the report said.

The group’s calculation was based on a mortgage interest rate of 5.87 percent and assumed a 20 percent down payment. The national minimum household income needed to buy a median-priced home at $220,000 last month was $51,740, the group said. [full story]

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