How are you figuring that?
Calculate the median income of home owners in a given area. Its available in census data. Then you take 30-40% of that gross. Assume they have 20% down payment and back calculate what home they can afford. If the home prices of the home owners in that area can't afford the home they live in, then prices haven't hit parity yet.
This is true still in many areas. Some places its not. Its also conservative because not many have 20% down payment in california anyways. Avg home price still at $400-500k in most area means $100k in savings. Who has that in cash? Not many.
Also read this:
Rent rates dropping
Edited by dcengr, 26 January 2009 - 06:21 PM.