First Time Home Buyers Get into the Market!

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 ®