mitch roschelle, always good stuff. thank you, sir, for joining us. >> you bet., ash. ashley: good to see you. talking risk, california is home to the country's most expensive housing market. lauren, how much do you need to make in order to afford a home in california? lauren: $223,000. that's the annual income to afford a home. ashley: ouch. lauren: they figured it out with a 7.4% interest rate, this is the problem, that's two and a half times the median household income if you live in california. the median home price $789,000. let me catch up to this. basically, that means you're spending -- 7200 on a monthly payment -- $720 0. annual income to aboard a home in san jose is, $454,000. i mean, that's how expensive california is. and just to be kind, we've put seattle on the list where the median annual income needed there is $213,000. ashley: yikes. that's very sobering, lauren. yeahing thank you very much. all right, mike murphy, come back into this. is buying a home in california just simply unaffordable? which, based on those numbers for the average person, y

mitch roh are shell, real estate guy, join ises me now -- mitch roschelle.tiate with the realtor to see how much he or she is going to get paid? >> basically, stuart, what's happened is we've bifurcated the relationship a buyer will have a broker with a negotiated fee, expect semier will have a broker with a -- seller will have a broker with a negotiated fee. it's probable there'll be a 3% fee on both sides,but the reality is the old model of the seller paying the entire commission has sort of been thrown out the window, and this locked-in 6% commission or for more expensive homes the 5% commission, that too the has been sort of thrown out with this case. having said that, there's going to be a ton of lawsuits flying around out there, so i don't think that this issue is completely settled. sue stuart now, "the new york times" says this change in what the realtor is getting paid could hurt first-time home buyers. how's that true? >> well, their thesis is that we're now adding, let's say, 3% to the amount of money that the buyer has to pay which mean they have