[quote=FormerSanDiegan]…..There are other interesting things in their report.
Their affordability index for San Diego for 1Q 2009 is 131*. This index is based on affordability relative to 1995. The interpretation is that housing in SD in 1Q 2009 was significantly more affordable than in 1995…..[/quote]
Affordability as measured here can be misleading. Prices are higher than in 1995, even when compared to wages. So homes are less affordable for cash buyers. But if you’re paying using other people’s money, and don’t plan to repay it any time soon, then lower interest rates makes a purchase more affordable.
