California real estate less affordable
January 9, 2004
Household income needed to purchase median-priced home rises to $90,800 in November
The percentage of households in California able to afford a median-priced home stood at 25 percent in November, unchanged from October, according to a report released today by the California Association of Realtors.
November's housing affordability index represented a 5 percentage-point decrease compared to the same period a year ago when the figure was 30 percent, according to the Realtors group.
The minimum household income needed to purchase a median-priced home at $386,760 in California in November was $90,800, based on a typical 30-year, fixed-rate mortgage at 5.85 percent and assuming a 20 percent down payment. That figure was up from $78,663 in November 2002, when the median price of a home was $328,440 and the prevailing interest rate was 6.08 percent.
The minimum household income needed to purchase a median-priced home at $170,900 in the United States in November 2003 was $40,120.
At 57 percent, the High Desert region was the most affordable region in the state, followed by the Sacramento region at 38 percent. The Northern Wine Country region was the least affordable in the state at 15 percent, followed by the San Diego region at 16 percent.
Los Angeles-based C.A.R. is a state trade association with approximately 135,000 members.
Copyright: Inman News Features