You'll be pleased to learn that the California Association of Realtors has determined there is not a real estate bubble. . . The actual problem is an "Income Gap".
California Income Gap Stands at $41,000
According to a new research analysis conducted by C.A.R., California households fell $41,360 short of the income needed to purchase a median-priced home. With a median household income of $52,320, households have just over half of the $93,680 needed to qualify to purchase a median-priced home at $406,390, according to C.A.R.’s Homebuyer Income Gap Index™.
The Homebuyer Income Gap Index™ for California increased 45 percent during the first quarter of 2004 compared to the first quarter of 2003, when the gap stood at $28,530, the median household income was $51,180, and qualifying income needed to purchase a median-priced home at $338,010 was $79,710. The Association’s Homebuyer Income Gap Index™ is a quarterly analysis of the difference between the median household income and the qualifying income needed to purchase a median-priced, single-family home for the state and select regions within the state.
"California Real Estate" June 2004 page 9
the official publication of the California Association of Realtors |
