|
For release:
C.A.R. reports entry-level housing affordability rises 18 percentage points in first quarter
LOS ANGELES (May 20) The percentage of households that could afford to buy an entry-level home in California stood at 44 percent in the first quarter of 2008, compared with 26 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 $356,350 in California in the first quarter of 2008 was $67,830, based on an adjustable interest rate of 5.65 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 $2,260 for the first quarter of 2008.
At $67,830, the minimum qualifying income was 30 percent lower than a year earlier when households needed $96,500 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California household, where the median household income was $50,700.
The First-time Buyer Housing Affordability Index rose 11 percentage points in the first quarter of this year compared to the fourth quarter of 2007 due to a .56 point decrease in the mortgage rate and a 14.3 percent decrease in the entry-level median home price.
At 64 percent,
Sacramento County and the High Desert region were the most affordable areas
in the state. Monterey was the least affordable area in the state at 29
percent, followed by the San Francisco Bay Area at 30 percent.
Leading the way...® in real estate news and information 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 nearly 175,000 members dedicated to the advancement of professionalism
in real estate. C.A.R. is headquartered in Los Angeles.
C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX *
|
C.A.R. Region |
Q1 2008 |
Q4 2007 |
|
Q1 2007 |
\ |
|
California |
44 |
33 |
|
26 |
r |
|
California - Condos |
50 |
42 |
|
37 |
r |
|
United States |
69 |
65 |
|
63 |
|
|
C.A.R. REGION |
|
|
|
|
|
|
Central Valley |
NA |
NA |
|
41 |
|
|
High Desert |
64 |
54 |
|
44 |
|
|
Los Angeles County |
35 |
27 |
|
21 |
r |
|
Monterey Region |
29 |
21 |
r |
19 |
|
|
Northern California |
48 |
42 |
|
37 |
|
|
Northern Wine Country |
39 |
33 |
|
24 |
|
|
Orange County |
36 |
28 |
|
25 |
|
|
Palm Sprgs/Lwr Desert |
42 |
38 |
|
32 |
|
|
Riverside/SBernardino |
57 |
46 |
|
37 |
r |
|
Sacramento County |
64 |
53 |
|
43 |
|
|
San Diego County |
41 |
31 |
|
23 |
|
|
San Francisco Bay |
30 |
23 |
|
24 |
|
|
San Luis Obispo County |
32 |
28 |
|
21 |
|
|
Santa Barbara Area |
33 |
21 |
|
12 |
|
|
Santa Clara County |
31 |
24 |
|
27 |
|
|
Southern California |
43 |
32 |
r |
25 |
|
|
Ventura County |
43 |
31 |
r |
26 |
\ |
|
COUNTY |
|
|
|
|
|
|
Alameda |
34 |
27 |
|
25 |
|
|
Contra Costa |
31 |
22 |
|
19 |
|
|
Fresno |
56 |
47 |
|
44 |
|
|
Marin |
24 |
22 |
|
21 |
|
|
Merced |
61 |
51 |
|
46 |
|
|
Riverside |
55 |
42 |
|
35 |
|
|
San Bernardino |
59 |
46 |
|
41 |
r |
|
San Francisco |
23 |
20 |
|
18 |
|
|
San Joaquin |
NA |
NA |
|
38 |
|
|
San Mateo |
22 |
19 |
|
19 |
|
|
Santa Cruz |
28 |
22 |
|
20 |
|
|
Sonoma |
41 |
36 |
|
26 |
|
|
Stanislaus |
NA |
NA |
|
40 |
|
* -- percentage of California households that can afford to purchase a median-priced home
r -- revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
|
|
1Q Housing |
Entry-Level Price |
Monthly Payment Including Taxes & Insurance |
Minimum |
|
|
California |
44 |
$356,350 |
$2,260 |
$67,830 |
|
|
California - Condos |
50 |
$311,260 |
$1,970 |
$59,250 |
|
|
United States |
69 |
$166,860 |
$1,060 |
$31,760 |
|
|
C.A.R. REGION |
|||||
|
Central Valley |
NA |
NA |
NA |
NA |
|
|
High Desert |
64 |
$187,130 |
$1,190 |
$35,620 |
|
|
Los Angeles County |
35 |
$390,450 |
$2,480 |
$74,320 |
|
|
Monterey Region |
29 |
$495,830 |
$3,150 |
$94,380 |
|
|
Northern California |
48 |
$296,580 |
$1,880 |
$56,460 |
|
|
Northern Wine Country |
39 |
$396,020 |
$2,510 |
$75,380 |
|
|
Orange County |
36 |
$508,200 |
$3,220 |
$96,740 |
|
|
Palm Sprgs/Lwr Desert |
42 |
$273,710 |
$1,740 |
$52,100 |
|
|
Riverside/SBernardino |
57 |
$244,040 |
$1,550 |
$46,450 |
|
|
Sacramento County |
64 |
$219,680 |
$1,390 |
$41,820 |
|
|
San Diego County |
41 |
$390,120 |
$2,480 |
$74,260 |
|
|
San Francisco Bay |
30 |
$596,450 |
$3,780 |
$113,540 |
|
|
San Luis Obispo County |
32 |
$408,540 |
$2,590 |
$77,770 |
|
|
Santa Barbara Area |
33 |
$434,660 |
$2,760 |
$82,740 |
|
|
Santa Clara County |
31 |
$663,000 |
$4,210 |
$126,200 |
|
|
Southern California |
43 |
$358,100 |
$2,270 |
$68,170 |
|
|
Ventura County |
43 |
$453,890 |
$2,880 |
$86,400 |
|
|
COUNTY |
|||||
|
Alameda |
34 |
$497,850 |
$3,160 |
$94,770 |
|
|
Contra Costa |
31 |
$598,150 |
$3,800 |
$113,860 |
|
|
Fresno |
56 |
$202,760 |
$1,290 |
$38,600 |
|
|
Marin |
24 |
$827,360 |
$5,250 |
$157,490 |
|
|
Merced |
61 |
$177,360 |
$1,130 |
$33,760 |
|
|
Riverside |
55 |
$254,940 |
$1,620 |
$48,530 |
|
|
San Bernardino |
59 |
$228,050 |
$1,450 |
$43,410 |
|
|
San Francisco |
23 |
$688,270 |
$4,370 |
$131,020 |
|
|
San Joaquin |
NA |
NA |
NA |
NA |
|
|
San Mateo |
22 |
$765,000 |
$4,850 |
$145,620 |
|
|
Santa Cruz |
28 |
$548,780 |
$3,480 |
$104,460 |
|
|
Sonoma |
41 |
$395,040 |
$2,510 |
$75,200 |
|
|
Stanislaus |
NA |
NA |
NA |
NA |
|
Source: CALIFORNIA ASSOCIATION OF REALTORS®
