For release:
Thursday, May 14, 2009
Quick Facts:
· C.A.R. First-time Buyer Housing Affordability Index stood at 69 percent
in the first quarter of 2009 compared with 46 percent (revised) in the
first quarter of 2008
· The median price of an entry-level home in California was $213,040 in the
first quarter of 2009
· The estimated monthly payment including taxes and insurance was $1,270 in
the first quarter of 2009
· The minimum household income needed to purchase an entry-level home in
California in the first quarter of 2009 was $38,090
C.A.R. reports entry-level housing affordability reached 69 percent in the
first quarter of 2009
LOS ANGELES (May 14) The percentage of households that could afford to buy
an entry-level home in California stood at 69 percent in the first quarter
of 2009, compared with 46 percent (revised) 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
$213,040 in California in the first quarter of 2009 was $38,090, based on
an adjustable interest rate of 4.96 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 $1,270 for the first quarter of 2009.
At $38,090, the minimum qualifying income was 41 percent lower than a year
earlier when households needed $65,030 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 the income level of a
typical California household, where the median household income is
$61,030.
The First-Time Buyer Housing Affordability Index also rose 7 percentage
points in the first quarter of this year compared with the fourth quarter
of 2008, due to a 14.1 percent decrease in the entry-level median home
price.
At 83 percent, the High Desert region was the most affordable area in the
state. The San Luis Obispo County region was the least affordable in the
state at 49 percent, followed by the Orange County region at 56
percent.
Note: The effective interest rate series previously used to calculate
C.A.R.’s First-Time Buyer Housing Affordability Index (FTB-HAI) was
discontinued in 2008. Beginning with this news release, the FTB-HAI will
incorporate an effective interest rate that is based on the one-year,
adjustable-rate mortgage (ARM) from Freddie Mac’s Primary Mortgage Market
Survey (PMMS). The effective rate accounts for both the one-year ARM rate
and the points/fees as reported by Freddie Mac. The revised statewide
historical series for the period 2000-Q1 through 2009-Q1 is posted on the
C.A.R. Web site at www.car.org; the complete revised historical series for
the counties and regions will be posted on car.org on May 21.
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 nearly 155,000 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 2009 |
Q4 2008 |
|
Q1 2008 |
|
|
California |
69 |
62 |
r |
46 |
r |
|
California - Condos |
73 |
68 |
r |
52 |
r |
|
United States |
76 |
74 |
r |
71 |
r |
|
High Desert |
83 |
78 |
r |
65 |
r |
|
Los Angeles County |
57 |
49 |
r |
36 |
r |
|
Monterey Region |
71 |
61 |
r |
31 |
r |
|
Northern California |
63 |
60 |
r |
53 |
r |
|
Northern Wine Country |
60 |
56 |
r |
42 |
r |
|
Orange County |
56 |
52 |
r |
38 |
r |
|
Palm Sprgs/Lwr Desert |
75 |
68 |
r |
44 |
r |
|
Riverside/SBernardino |
77 |
72 |
r |
58 |
r |
|
Sacramento County |
80 |
76 |
r |
65 |
r |
|
San Diego County |
61 |
59 |
r |
43 |
r |
|
San Francisco Bay |
62 |
50 |
r |
32 |
r |
|
San Luis Obispo County |
49 |
47 |
r |
33 |
r |
|
Santa Barbara Area |
64 |
58 |
r |
33 |
r |
|
Santa Clara County |
62 |
53 |
r |
33 |
r |
|
Southern California |
67 |
61 |
r |
44 |
r |
|
Ventura County |
65 |
61 |
r |
45 |
r |
|
County |
|
|
|
|
|
|
Alameda |
62 |
51 |
r |
36 |
r |
|
Contra Costa |
50 |
38 |
r |
33 |
r |
|
Fresno |
77 |
72 |
r |
58 |
r |
|
Marin |
41 |
33 |
r |
25 |
r |
|
Merced |
84 |
81 |
r |
63 |
r |
|
Riverside |
77 |
73 |
r |
57 |
r |
|
San Bernardino |
79 |
73 |
r |
61 |
r |
|
San Francisco |
39 |
33 |
r |
25 |
r |
|
San Joaquin |
n.a. |
n.a. |
n.a. |
||
|
San Mateo |
51 |
40 |
r |
24 |
r |
|
Santa Cruz |
53 |
46 |
r |
30 |
r |
|
Sonoma |
63 |
59 |
r |
44 |
r |
|
Stanislaus |
n.a. |
n.a. |
n.a. |
* -- percentage of California households that can afford to purchase a median-priced home
r – revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
|
C.A.R. Region |
Housing |
Entry-Level Price |
Monthly Payment Including Taxes & Insurance |
Minimum |
|
California |
69 |
$213,040 |
$1,270 |
$38,090 |
|
California - Condos |
73 |
$186,440 |
$1,110 |
$33,330 |
|
United States |
76 |
$143,650 |
$860 |
$25,680 |
|
High Desert |
83 |
$103,220 |
$620 |
$18,450 |
|
Los Angeles County |
57 |
$257,970 |
$1,540 |
$46,120 |
|
Monterey Region |
71 |
$210,960 |
$1,260 |
$37,720 |
|
Northern California |
63 |
$218,600 |
$1,300 |
$39,080 |
|
Northern Wine Country |
60 |
$277,270 |
$1,650 |
$49,570 |
|
Orange County |
56 |
$370,410 |
$2,210 |
$66,220 |
|
Palm Sprgs/Lwr Desert |
75 |
$132,480 |
$790 |
$23,690 |
|
Riverside/SBernardino |
77 |
$146,660 |
$870 |
$26,220 |
|
Sacramento County |
80 |
$143,870 |
$860 |
$25,720 |
|
San Diego County |
61 |
$274,700 |
$1,640 |
$49,110 |
|
San Francisco Bay |
62 |
$341,680 |
$2,040 |
$61,090 |
|
San Luis Obispo County |
49 |
$306,570 |
$1,830 |
$54,810 |
|
Santa Barbara Area |
64 |
$246,980 |
$1,470 |
$44,150 |
|
Santa Clara County |
62 |
$382,500 |
$2,280 |
$68,380 |
|
Southern California |
67 |
$220,150 |
$1,310 |
$39,360 |
|
Ventura County |
65 |
$308,560 |
$1,840 |
$55,160 |
|
County |
|
|
|
|
|
Alameda |
62 |
$299,760 |
$1,790 |
$53,600 |
|
Contra Costa |
50 |
$441,040 |
$2,630 |
$78,860 |
|
Fresno |
77 |
$120,500 |
$720 |
$21,550 |
|
Marin |
41 |
$612,760 |
$3,650 |
$109,560 |
|
Merced |
84 |
$89,040 |
$530 |
$15,920 |
|
Riverside |
77 |
$146,820 |
$880 |
$26,250 |
|
San Bernardino |
79 |
$131,850 |
$790 |
$23,580 |
|
San Francisco |
39 |
$511,840 |
$3,050 |
$91,520 |
|
San Joaquin |
n.a. |
n.a. |
n.a. |
n.a. |
|
San Mateo |
51 |
$478,130 |
$2,850 |
$85,490 |
|
Santa Cruz |
53 |
$348,500 |
$2,080 |
$62,310 |
|
Sonoma |
63 |
$275,500 |
$1,640 |
$49,260 |
|
Stanislaus |
n.a. |
n.a. |
n.a. |
n.a. |
Source: CALIFORNIA ASSOCIATION OF REALTORS®
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