California housing: still unaffordable

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From Inman News: ‘A new report released by an industry trade group found that only 24% of California households could afford to buy an entry-level home during the second quarter.’

More on the affordability report from the California Assn. of Realtors: ‘The minimum household income needed to purchase an entry-level home at $504,080 in California in the second quarter of 2007 was $101,550, based on an adjustable interest rate of 6.29% and assuming a 10% down payment.’

More numbers: The price of an entry-level home in Los Angeles is estimated at -- oddly -- the exact same amount as the statewide number, $504,080, requring the same income, $101,550.

Our take: First-time buyers put down a lot less than 10%, on average. In 2006, 41% of first-time buyers put nothing down, according to CAR.

Thoughts? Comments? Insights?