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Fourth quarter 2009 housing affordability

February 18th, 2010 3:37 PM by Lehel S.

Fourth quarter housing affordability

Friday, Feb. 12, 2010


C.A.R. reports entry-level housing affordability remained at 64 percent in the fourth quarter of 2009

Quick Facts:
. C.A.R. First-time Buyer Housing Affordability Index stood at 64 percent in the fourth quarter of 2009
compared with 61 percent (revised) in the fourth quarter of 2008
. The median price of an entry-level home in California was $257,940 in the fourth quarter of 2009
. The estimated monthly payment including taxes and insurance was $1,470 in the fourth quarter of
2009
. The minimum household income needed to purchase an entry-level home in California in the fourth
quarter of 2009 was $44,100.

LOS ANGELES (Feb. 12) The percentage of households that could afford to buy an entry-level home in California remained at 64 percent in the fourth quarter of 2009, compared with 61 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 $257,940 in California in the fourth quarter of 2009 was $44,100, based on an adjustable interest rate of 4.5 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 $1,470 for the fourth quarter of 2009.

At $44,100, the minimum qualifying income was 4 percent lower than a year earlier when households needed $45,900 to qualify for a loan on an entry-level home. Home prices remained below peak levels, resulting in an improvement in housing affordability compared with the previous year.

At 84 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 48 percent, followed by the San Francisco Bay region and Santa Barbara area both at 50 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

Q4 2009

Q3 2009

Q4 2008

California

64

64

61

r

California - Condos

68

68

67

r

United States

77

76

74

High Desert

84

85

78

Los Angeles County

53

52

49

Monterey Region

65

66

61

Northern California

65

63

61

r

Northern Wine Country

58

58

56

Orange County

53

51

52

Palm Springs/Lower Desert

74

74

68

Riverside/San Bernardino

78

78

72

Sacramento County

79

78

76

San Diego County

57

56

57

San Francisco Bay

50

49

50

San Luis Obispo County

48

47

47

Santa Barbara Area

50

52

57

Santa Clara County

52

53

53

Southern California

63

64

61

Ventura County

59

56

61

County

Alameda

52

52

51

Contra Costa

44

42

38

Fresno

77

76

72

Marin

40

37

33

Merced

84

83

81

Riverside

78

78

73

San Bernardino

81

81

73

San Francisco

35

35

33

San Mateo

41

40

40

Santa Cruz

43

43

46

Sonoma

59

60

59


* -- 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

64

$257,940

$1,470

$44,100

California - Condos

68

$229,360

$1,310

$39,300

United States

77

$146,970

$840

$25,200

High Desert

84

$103,130

$590

$17,700

Los Angeles County

53

$299,760

$1,710

$51,300

Monterey Region

65

$266,190

$1,520

$45,600

Northern California

65

$220,780

$1,260

$37,800

Northern Wine Country

58

$312,230

$1,780

$53,400

Orange County

53

$420,770

$2,400

$72,000

Palm Springs/Lower Desert

74

$144,610

$830

$24,900

Riverside/San Bernardino

78

$150,240

$860

$25,800

Sacramento County

79

$160,290

$920

$27,600

San Diego County

57

$322,330

$1,840

$55,200

San Francisco Bay

50

$468,620

$2,680

$80,400

San Luis Obispo County

48

$329,010

$1,880

$56,400

Santa Barbara Area

50

$357,710

$2,040

$61,200

Santa Clara County

52

$497,250

$2,840

$85,200

Southern California

63

$256,620

$1,470

$44,100

Ventura County

59

$370,120

$2,110

$63,300

County

Alameda

52

$399,880

$2,280

$68,400

Contra Costa

44

$525,880

$3,000

$90,000

Fresno

77

$128,560

$730

$21,900

Marin

40

$654,070

$3,730

$111,900

Merced

84

$94,360

$540

$16,200

Riverside

78

$152,680

$870

$26,100

San Bernardino

81

$133,580

$760

$22,800

San Francisco

35

$598,860

$3,420

$102,600

San Mateo

41

$612,000

$3,490

$104,700

Santa Cruz

43

$454,840

$2,600

$78,000

Sonoma

59

$318,620

$1,820

$54,600


Source: CALIFORNIA ASSOCIATION OF REALTORS®

Posted in:General
Posted by Lehel S. on February 18th, 2010 3:37 PM

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