For release:
Thursday, Nov. 12, 2009
Quick Facts:
· C.A.R. First-time Buyer Housing Affordability Index stood at 64 percent
in the third quarter of 2009 compared with 55 percent (revised) in the
third quarter of 2008
· The median price of an entry-level home in California was $247,150 in the
third quarter of 2009
· The estimated monthly payment including taxes and insurance was $1,450 in
the third quarter of 2009
· The minimum household income needed to purchase an entry-level home in
California in the third quarter of 2009 was $43,500
C.A.R. reports entry-level housing affordability reached 64 percent in the
third quarter of 2009
LOS ANGELES (Nov. 12) The percentage of households that could afford to buy
an entry-level home in California stood at 64 percent in the third quarter
of 2009, compared with 55 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
$247,150 in California in the third quarter of 2009 was $43,500, based on
an adjustable interest rate of 4.79 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 $1,450 for the third quarter of 2009.
At $43,500, the minimum qualifying income was 19 percent lower than a year
earlier when households needed $53,700 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 households, where the median household income is
$61,030.
The First-time Buyer Housing Affordability Index declined 3 percentage
points in the third quarter of this year compared with the second quarter
of 2009, due to a 10.2 percent increase in the price of an entry-level
home.
At 85 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 47 percent, followed by the San Francisco Bay region at 49
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 167,000
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 |
Q3 2009 |
Q2 2009 |
Q3 2008 |
||
|
California |
64 |
67 |
55 |
r |
|
|
California – Condos |
68 |
70 |
59 |
r |
|
|
United States |
76 |
76 |
70 |
r |
|
|
High Desert |
85 |
86 |
74 |
r |
|
|
Los Angeles County |
52 |
56 |
44 |
r |
|
|
Monterey Region |
66 |
71 |
54 |
r |
|
|
Northern California |
63 |
62 |
56 |
r |
|
|
Northern Wine Country |
58 |
59 |
52 |
r |
|
|
Orange County |
51 |
53 |
46 |
r |
|
|
Palm Springs/Lower Desert |
74 |
76 |
61 |
r |
|
|
Riverside/San Bernardino |
78 |
79 |
68 |
r |
|
|
Sacramento County |
78 |
79 |
72 |
r |
|
|
San Diego County |
56 |
59 |
51 |
||
|
San Francisco Bay |
49 |
55 |
38 |
r |
|
|
San Luis Obispo County |
47 |
50 |
41 |
r |
|
|
Santa Barbara Area |
52 |
55 |
46 |
r |
|
|
Santa Clara County |
53 |
58 |
41 |
r |
|
|
Southern California |
64 |
67 |
54 |
r |
|
|
Ventura County |
56 |
59 |
53 |
r |
|
|
County |
|||||
|
Alameda |
52 |
55 |
42 |
r |
|
|
Contra Costa |
42 |
43 |
33 |
r |
|
|
Fresno |
76 |
78 |
67 |
r |
|
|
Marin |
37 |
37 |
26 |
r |
|
|
Merced |
83 |
84 |
76 |
r |
|
|
Riverside |
78 |
79 |
68 |
r |
|
|
San Bernardino |
81 |
82 |
70 |
r |
|
|
San Francisco |
35 |
36 |
28 |
r |
|
|
San Mateo |
40 |
39 |
32 |
r |
|
|
Santa Cruz |
43 |
46 |
36 |
r |
|
|
Sonoma |
60 |
62 |
54 |
r |
* -- percentage of California households that can afford to purchase an entry-level home
r – revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
|
C.A.R. Region |
Housing |
Entry-Level Price |
Monthly Payment Including Taxes & Insurance |
Minimum |
|
California |
64 |
$247,150 |
$1,450 |
$43,500 |
|
California - Condos |
68 |
$224,000 |
$1,310 |
$39,300 |
|
United States |
76 |
$151,220 |
$890 |
$26,700 |
|
High Desert |
85 |
$96,190 |
$560 |
$16,800 |
|
Los Angeles County |
52 |
$293,790 |
$1,720 |
$51,600 |
|
Monterey Region |
66 |
$250,870 |
$1,470 |
$44,100 |
|
Northern California |
63 |
$223,040 |
$1,310 |
$39,300 |
|
Northern Wine Country |
58 |
$297,880 |
$1,750 |
$52,500 |
|
Orange County |
51 |
$423,960 |
$2,490 |
$74,700 |
|
Palm Springs/Lower Desert |
74 |
$139,400 |
$820 |
$24,600 |
|
Riverside/San Bernardino |
78 |
$142,840 |
$840 |
$25,200 |
|
Sacramento County |
78 |
$158,620 |
$930 |
$27,900 |
|
San Diego County |
56 |
$321,420 |
$1,890 |
$56,700 |
|
San Francisco Bay |
49 |
$457,400 |
$2,680 |
$80,400 |
|
San Luis Obispo County |
47 |
$330,590 |
$1,940 |
$58,200 |
|
Santa Barbara Area |
52 |
$330,480 |
$1,940 |
$58,200 |
|
Santa Clara County |
53 |
$481,100 |
$2,820 |
$84,600 |
|
Southern California |
64 |
$245,130 |
$1,440 |
$43,200 |
|
Ventura County |
56 |
$385,910 |
$2,260 |
$67,800 |
|
County |
|
|
|
|
|
Alameda |
52 |
$392,860 |
$2,300 |
$69,130 |
|
Contra Costa |
42 |
$533,310 |
$3,130 |
$93,840 |
|
Fresno |
76 |
$126,670 |
$740 |
$22,290 |
|
Marin |
37 |
$682,660 |
$4,000 |
$120,120 |
|
Merced |
83 |
$94,050 |
$550 |
$16,550 |
|
Riverside |
78 |
$147,780 |
$870 |
$26,000 |
|
San Bernardino |
81 |
$125,250 |
$730 |
$22,040 |
|
San Francisco |
35 |
$579,510 |
$3,400 |
$101,970 |
|
San Mateo |
40 |
$603,500 |
$3,540 |
$106,190 |
|
Santa Cruz |
43 |
$442,000 |
$2,590 |
$77,770 |
|
Sonoma |
60 |
$306,100 |
$1,800 |
$53,860 |
Source: CALIFORNIA ASSOCIATION OF REALTORS®
