California real estate less affordable

January 9, 2004

Household income needed to purchase median-priced home rises to $90,800 in November


Inman News

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


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.