While we are kicking around that affordability thing, let’s note that by the traditional measuring of the Housing Affordability Index that we are still better than the last peak.

The San Diego index got down to 8 in 2005, and today we are at 27:


But that is using today’s San Diego County’s median sales price of $485,040, for which it takes an income of $99,670 to qualify for an 80% LTV mortgage.

Have you seen many houses around NSDCC selling for $485,000?  Me neither.  In the last 60 days there have been 403 NSDCC detached-home sales closed, and only three of those were under $485,000!

The NSDCC median sales price for the last 60 days? $1,010,000.

In the same stretch last year we sold 500 houses, median SP = $837,243 with mortgage rates in the low 3s.

Income needed to qualify for 80% LTV mortgage:

2012: $126,500

2013: $175,000

Logically, this affordability issue should start to matter at some point.  Could we run out of buyers?  There have been 1,425 houses sold this year over $1,000,000 between La Jolla and Carlsbad!

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