Some Anecdotal Evidence...

Anyone with any kind of science background knows anecdotal evidence is weak and shouldn't be given the merit one gives to formal studies and surveys, but still... Talked to an accountant today and the topic of real estate here in San Diego came up. He mentioned, as an aside, that a number of his clients who are real estate brokers haven't closed a deal in months. His wife is a mortgage broker and he said that over 80% of his wife's customers are of the 'no stated income' flavor, which basically means these people are buying more than they can afford and likely are just scraping by to make ends meet.

And who can be surprised by this news, seeing as California's housing affordability index has fallen to a 16-year low. In June of this year the median California home with a down payment of 20% and a fixed 5.71% mortgage would require an annual income north of $125,000. Problem is, the average Californian family makes less than $60,000. Eep.