Welcome to Unaffordability, NJ!

The National Association of Homebuilders (NAHB) & Wells Fargo released their year end 2005 affordability study.

Indianapolis Recaptures Title Of Most-Affordable Major Housing Market At Year-End 2005

At the bottom of the affordability scale was Los Angeles-Long Beach-Glendale, Calif., where just 2.3 percent of homes sold in the fourth quarter were affordable to families earning the area’s median household income of $54,500. The median price of all homes sold in that area was an even $500,000. And as usual, the bottom of the affordability scale was dominated by large California cities, including Santa Ana-Anaheim-Irvine, San Diego-Carlsbad-San Marcos, and Stockton. New York-White Plains-Wayne, N.Y.-N.J. rounded out the list of the five least-affordable major housing markets.

The complete list by affordability rank (in Excel format) can be found here.

Caveat Emptor!
Grim

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9 Responses to Welcome to Unaffordability, NJ!

  1. gary says:

    Inventory build up, bubble or no bubble, inflation, population growth or lack thereof….. all this talk doesn’t mean a thing to me as long as I still see prices in the stratosphere. When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I’ll say the market has turned.

  2. Anonymous says:

    “When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I’ll say the market has turned.”

    We looked at a very old house last week, and it had the creepiest basement. Lying on the floor of the dark basement (the semi-working flourescent lights were at about 5% brightness) was a huge ax, a chainsaw, and weird holes in the foundation, like somone had buried something.

    That was like living Friday the 13th!

    We got the hell out of there!

  3. Gary says:

    Anon,

    The price alone should make you shreik!!

  4. Anonymous says:

    An interesting home affordability calculator:

    http://www.migginsrealestate.com/calc_afford.html

    According to that, if you earn $200K a year, and have $120,000 in cash for a downpayment, and zero debt, you can afford a $750K house with $10K annual property taxes.

    How many people buying $750K homes do you think earn $200K a year, 5%?

  5. Pingback: Anonymous

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