Buyers fall short in Golden State
March 7, 2003
C.A.R.'s affordability index dips 2% in January
Inman News Features
The percentage of households in California able to afford a median-priced home decreased by two percentage points in January compared with a year ago, the California Association of Realtors reported today.
C.A.R.'s Housing Affordability Index stood at 29 percent in January, down two points from 31 percent recorded the same month a year earlier, and up one percentage point from 28 percent in December.
The minimum household income needed to purchase a median-priced home of $336,740 in California in January was $79,820, based on a typical 30-year, fixed-rate mortgage at 5.96 percent and assuming a 20 percent downpayment, according to C.A.R. The minimum income was up from $73,650 in January 2002, when the median price of a home was $287,080 and the prevailing interest rate was 6.89 percent.
At 65 percent, the High Desert was the most affordable region in the state, followed by Riverside/San Bernardino at 45 percent. Monterey was the least affordable region in the state at 19 percent, followed by the Northern Wine Country at 20 percent.
Los Angeles-based C.A.R. is a state trade association with approximately 115,000 members.
Copyright: Inman News Service