CALIF DREAMIN'

SAN FRANCISCO (Reuters) - Soaring prices in California's housing market have shut out a record 86 percent of households from buying a typical home with a traditional down-payment, according to a study released Thursday.

Home prices across California have more than doubled since late 2001, increasing pressure on home buyers, who needed a minimum household income of $133,800 to buy a home at the August median price of $568,890, the California Association of Realtors said in its report.

That meant that only 14 percent of households could afford the typical home, down from 18 percent a year earlier, and the lowest level since records began in 1989, the report said.

The group's calculation was based on a mortgage interest rate of 5.87 percent and assumed a 20 percent down payment. The national minimum household income needed to buy a median-priced home at $220,000 last month was $51,740, the group said.

"It certainly is a concern when we reach a record low for affordability," said association economist Robert Kleinhenz.

August's affordability reading matched a record low 14 percent recorded in early 1989, shortly before a downturn in property prices that began in mid-1991.

**Also many are using 40 even 50% of disposable income to get into a house up from avg 30% more typical.

D,,,,,,looking for a bump out of gate and a weakening close