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 ®
