Update on Home Affordability in California
Thursday, May 13, 2010
C.A.R. reports entry-level housing affordability at 66 percent in the first quarter of 2010
· C.A.R. First-time Buyer Housing Affordability Index stood at 66 percent in the first quarter of 2010 compared with 69 percent in the first quarter of 2009
· The median price of an entry-level home in California was $246,270 in the first quarter of 2010
· The estimated monthly payment including taxes and insurance was $1,380 in the first quarter of 2010
· The minimum household income needed to purchase an entry-level home in California in the first quarter of 2010 was $41,540.
LOS ANGELES (May 13) — The percentage of households that could afford to buy an entry-level home in California stood at 66 percent in the first quarter of 2010, compared with 69 percent for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index(FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at $246,270 in California in the first quarter of 2010 was $41,540, based on an adjustable effective interest rate of 4.33 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,380 for the fourth quarter of 2010. At $41,540, the minimum qualifying income was $3,910 greater than a year earlier when households needed $37,630 to qualify for a loan on an entry-level home.
At 84 percent, the HighDesert region was the most affordable area in the state. The San Luis ObispoCounty region was the least affordable in the state at 52 percent, followed by the San FranciscoBay region at 53 percent.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Affordability Statistics for San Diego County
The affordability index is 58%, meaning that 58% of the people who could buy a home in San Diego County will qualify as far as being able to “afford” a home. The entry level point for these buyers is $322,120 with a monthly payment of principle, interest, taxes and insurance of approximately $1810. The qualifying income is $54,300.