The California Association of Realtors http://www.car.org put out its mid-year forecast this week. They figure the median home price will hit a record $523,150 in 2005, up 16% from 2004’s record of $450,990. The Realtors also project that the percentage of the state's population that will actually be able to afford a median-priced home will fall to 16% from 20% last year. In other words only one out of every six Californians will be able to buy a typical home in the state. The minimum salary needed to qualify under conventional loan terms: $115,000 a year. Incidentally, the last time that affordability index fell below 20% was 1989, shortly before California housing prices crashed.