Perhaps This Is Bullish Housing

[Pa(b)st Prime]

In just a little more than a year, the percentage of households who could afford an entry-level home in California went from 24% in the third quarter of 2007 to 59% in the fourth quarter of 2008. For Santa Barbara during the same period, the percentage went from 11% (only 1 in 9) to 55% (more than one in two).

http://www.car.org/economics/marketdata/ftbhai/

 

[Daal]

I see dataquick reporting CA Notices of Default(first step in foreclosure process) reaching an all-time record last month.
Notices of trustee(second step) sale up 82% from feb. The discounts of homes at auction 'increased substantially' from feb
That data that picked up was third party purchases going to 10.7%, this means banks are taking back 90% of homes and taking big haircuts to get rid of those homes

Its said that these banks REOs are not disclosed in the inventory data('shadow inventory') so it looks like prices are going to keep going down as a long the NODs stay high

 

[Mvic]

My first thought was there is a difference between being able to afford the house and qualifying for the mortgage. However, it looks like credit scores are actually rising:
http://www.marketwire.com/press-release/Credit-Karma-974543.html

 

[bruceistheone]

You might be able to afford the monthly payments, its the air conditioner compressor, wiring, roofing, and all the other stuff that are a bitch to pay for. Don't forget pest control and lawn irrigation and maintenance.