Our Real Estate Blog

Entry-level housing affordability stood at 66 percent in Q1 2010

May 26th, 2010 12:58 PM by Lehel S.

Entry-level housing affordability stood at 66 percent in Q1 2010
For release:
Thursday, May 13, 2010

C.A.R. reports entry-level housing affordability at 66 percent in the first quarter of 2010

Quick Facts:

· C.A.R. First-time Buyer Housing Affordability Index stood at 66 percent in the first quarter of 2010 compared with 69 percent in the first quarter of 2009

· The median price of an entry-level home in California was $246,270 in the first quarter of 2010

· The estimated monthly payment including taxes and insurance was $1,380 in the first quarter of 2010

· The minimum household income needed to purchase an entry-level home in California in the first quarter of 2010 was $41,540.

LOS ANGELES (May 13) -- The percentage of households that could afford to buy an entry-level home in California stood at 66 percent in the first quarter of 2010, compared with 69 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 $246,270 in California in the first quarter of 2010 was $41,540, based on an adjustable effective interest rate of 4.33 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 $1,380 for the fourth quarter of 2010. At $41,540, the minimum qualifying income was $3,910 greater than a year earlier when households needed $37,630 to qualify for a loan on an entry-level home.

At 84 percent, the HighDesert region was the most affordable area in the state. The San Luis ObispoCounty region was the least affordable in the state at 52 percent, followed by the San FranciscoBay region at 53 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 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 2010

Q4 2009

Q1 2009

California

66

64

69

California – Condos

70

68

72

United States

79

78

r

77

High Desert

84

84

83

Los Angeles

56

53

57

Monterey Region

67

65

71

Northern California

67

65

63

Northern Wine Country

60

58

60

Orange County

54

53

56

Palm Springs/Lower Desert

73

74

75

Riverside/San Bernardino

78

78

77

Sacramento County

80

79

80

San Diego County

58

57

60

San Francisco Bay

53

50

62

San Luis Obispo County

52

48

49

Santa Barbara area

56

50

64

Santa Clara County

55

52

62

Southern California

65

63

68

Ventura County

60

59

65

COUNTY

Alameda

54

52

62

Contra Costa

46

44

50

Fresno

77

77

77

Marin

41

40

41

Merced

85

84

84

Riverside

77

78

77

San Bernardino

81

81

79

San Francisco

37

35

39

San Mateo

42

41

51

Santa Cruz

45

43

53

Sonoma

62

59

63


* -- 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
Affordability Index

Entry-Level Price

Monthly Payment Including Taxes & Insurance

Minimum
Qualifying Income

California

66

$246,270

$1,380

$41,540

California - Condos

70

$220,720

$1,240

$37,230

United States

79

$141,190

$790

$23,810

High Desert

84

$104,810

$590

$17,680

Los Angeles County

56

$281,700

$1,580

$47,510

Monterey Region

67

$254,140

$1,430

$42,860

Northern California

67

$211,640

$1,190

$35,700

Northern Wine Country

60

$297,970

$1,680

$50,260

Orange County

54

$413,680

$2,330

$69,770

Palm Sprgs/Lwr Desert

73

$154,530

$870

$26,060

Riverside/SBernardino

78

$153,390

$860

$25,870

Sacramento County

80

$152,520

$860

$25,720

San Diego County

58

$322,120

$1,810

$54,330

San Francisco Bay

53

$440,440

$2,480

$74,290

San Luis Obispo County

52

$310,110

$1,740

$52,300

Santa Barbara Area

56

$319,760

$1,800

$53,930

Santa Clara County

55

$476,000

$2,680

$80,280

Southern California

65

$252,910

$1,420

$42,660

Ventura County

60

$373,960

$2,100

$63,070

County

Alameda

54

$389,010

$2,190

$65,610

Contra Costa

46

$512,390

$2,880

$86,420

Fresno

77

$127,580

$720

$21,520

Marin

41

$655,860

$3,690

$110,620

Merced

85

$88,310

$500

$14,890

Riverside

77

$161,190

$910

$27,190

San Bernardino

81

$131,250

$740

$22,140

San Francisco

37

$574,790

$3,230

$96,950

San Mateo

42

$597,550

$3,360

$100,780

Santa Cruz

45

$437,750

$2,460

$73,830

Sonoma

62

$306,290

$1,720

$51,660

Source: CALIFORNIA ASSOCIATION OF REALTORS ®

Posted in:General
Posted by Lehel S. on May 26th, 2010 12:58 PM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: