According to the California Association of Realtors, the median sales price of a San Francisco Bay Area home increased 1.8% from May to June.
At the same time, C.A.R. reports that the affordability index (i.e. percentage of households that can afford a median priced home) in San Francisco County increased from 8% to 9%.
So unless household incomes have significantly increased over the past month (which we doubt), and assuming that interest rates haven’t dropped (which they haven’t), it appears that the median sales price of a home in San Francisco proper has actually dropped over the past month.
· California’s Housing Affordability Index – June ‘05 [C.A.R.]