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Less than 1 out of 3 California families can afford to purchase a home: The number of Millennials living at home continues to grow.
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
doctorhousingbubble.com / Feb 14, 2016
We are definitely into housing bubble territory. The latest California affordability figures show that only 29 percent of families can actually buy a home at today’s prices. This is why we are seeing products like the PoppyLoan coming about in the Bay Area trying to bring back the nothing down days of the last bubble. You also have companies promoting their “one-click” mortgages as if taking on $800,000 in debt for a piece of junk in San Francisco is a decision that should be made similar to liking a friend’s video on Facebook of a cat dressed up as a banker. The number of young adults living at home continues to stay at a record high. Of course this is being driven by affordability and more to the point that people simply do not have the incomes to justify current prices. The PoppyLoan in San Francisco, the hub of high income workers, actually states that this loan was made because people had a tough time saving enough for a down payment. That should tell you a lot. So let us look at the latest affordability figures.
California affordability
The last time we were in the 20 percent range of affordability for California was when we were deep in the last housing bubble (on the manic mortgage days and also leading to the implosion). You need to understand what this means. Household incomes are fully stretched. We are now at the stage that companies are offering exotic products to circumvent the inability for households to save for a down payment. In many areas prices have been driven up thanks to foreign money and investors. I always find it interesting that local house humping cheerleaders seem to think that foreigners just want to flush money down the toilet. Don’t you think they care about their money more than some Taco Tuesday boomer? And let us be direct, in California this foreign money is coming in from China. China’s economy has hit a big snag recently. We are yet to see how this impacts the overall market.
The post Less than 1 out of 3 California families can afford to purchase a home: The number of Millennials living at home continues to grow. appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/14/less-than-1-out-of-3-california-families-can-afford-to-purchase-a-home-the-number-of-millennials-living-at-home-continues-to-grow/
