Comments on: California Affordability: 24% – WOOT! http://www.burbed.com/2006/12/06/california-affordability-24-woot/ San Francisco Bay Area, Silicon Valley House Price and Mortgage Insanity Blog Wed, 08 Feb 2012 21:20:41 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: 90803 http://www.burbed.com/2006/12/06/california-affordability-24-woot/#comment-393 90803 Thu, 07 Dec 2006 15:55:52 +0000 http://www.burbed.com/2006/11/28/california-affordability-24-woot/#comment-393 There was another change -> the new way of calculating the "affordable" house price is pegging it at 85% of the median statewide price. The rational behind this move was that first-time buyers don't buy a median price home. Under the old standard—down here in the LA/OC area—the affordibility index was under 2%. So by jiving around with their index, CAR has magically made homes affordable to 12X as many (shee)people. We should all be grateful. There was another change -> the new way of calculating the “affordable” house price is pegging it at 85% of the median statewide price. The rational behind this move was that first-time buyers don’t buy a median price home.

Under the old standard—down here in the LA/OC area—the affordibility index was under 2%. So by jiving around with their index, CAR has magically made homes affordable to 12X as many (shee)people. We should all be grateful.

]]> By: burbed http://www.burbed.com/2006/12/06/california-affordability-24-woot/#comment-392 burbed Wed, 06 Dec 2006 23:55:01 +0000 http://www.burbed.com/2006/11/28/california-affordability-24-woot/#comment-392 I wonder what the actual affordability would be if they continued to use the old formula. I wonder what the actual affordability would be if they continued to use the old formula.

]]> By: yizzung http://www.burbed.com/2006/12/06/california-affordability-24-woot/#comment-391 yizzung Wed, 06 Dec 2006 22:50:19 +0000 http://www.burbed.com/2006/11/28/california-affordability-24-woot/#comment-391 Also, you will want to note that they very subtly changed the methodology from just a year ago. Historically, housing affordability is calculated using a 20% down payment and a 30-year fixed rate loan. Since that calculation made houses seem too expensive, they decided to change the formula to a 10% down, floating rate calculation. Why not zero down and a negative amortization loan? We might hit 50% next time around! Also, you will want to note that they very subtly changed the methodology from just a year ago. Historically, housing affordability is calculated using a 20% down payment and a 30-year fixed rate loan. Since that calculation made houses seem too expensive, they decided to change the formula to a 10% down, floating rate calculation.

Why not zero down and a negative amortization loan? We might hit 50% next time around!

]]> By: IUnknown http://www.burbed.com/2006/12/06/california-affordability-24-woot/#comment-390 IUnknown Wed, 06 Dec 2006 17:16:12 +0000 http://www.burbed.com/2006/11/28/california-affordability-24-woot/#comment-390 And let me tell you San Mateo is prime! And let me tell you San Mateo is prime!

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