Thursday, April 14, 2011

Bay Area Home Prices affordability

This news was posted on February 3, 1990 by local newspaper.

The percentage of Bay Area families who could afford to buy a house remained the lowest in the state in December, followed by Orange County and Los Angeles. Only 11 percent of Bay Area households could qualify for a house costing $257,535 - the median price - the same percentage since October, according to the California Association of Realtors.

Assuming a 20 percent down payment, a Bay Area family would need a minimum income of $83,925 to manage the $2,098 a month mortgage.

In Orange County, only 15 percent of households qualified for a median-priced, $248,664 house. Some 35 percent of households in the Sacramento area could afford a $123,064 median-priced

Personally I would not recommend back then for the family with $83,925 income to spent $2,098 on mortgage. Some realtors could say that the homes became more affordable in Silicon Valley, and $2,098 will be enough to pay mortgage for San Francisco Bay Area home with a half a million price tag assuming current mortgage rates and 20 percent down payment, but what could software engineer buy for half a million dollars Bay Area home in a good school district now?

2 comments:

Anonymous said...

Thank you for the work you have put into the post, this helps clear up some questions I had.

Anonymous said...

How big was the median-priced house in Bay Area back then?