I heard on NPR over the weekend that the incoming chair of the Fed doesn't believe there's a housing bubble. Interesting. I'd love to get his take on this:
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| California households earning the median income of $54,140 need more than double that income to qualify for a mortgage on a home selling for the statewide median price of $545,910, a real estate trade group said Tuesday.
Homebuyers in the pricey San Francisco Bay area, meanwhile, need to make $100,670 more than their median income of $68,520 to qualify for a home listed at the median price of $721,850, according to the California Association of Realtors' Homebuyer Income Gap Index for the third quarter 2005. |
I'm no economist, but if the median income is less than half the media home price in the most populous state in the nation, doesn't that suggest there's a problem? And that current price levels aren't sustainable? What am I missing here?
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