Are you waiting for home prices to drop before you buy?
In review of the November 12, 2012, 3rd Quarter Press Release from the California Association of Realtors, the percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California dropped to 49% in the third quarter of 2012; down from 51% in second-quarter 2012 according to C.A.R.’s Traditional Housing Affordability Index (HAI).
California Association Rrealtor’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.
According to this HAI, home buyers would need to earn a minimum annual income of $65,810 to qualify for the purchase of a $339,860 statewide median-priced, existing single-family home in the third quarter of 2012 (*Assuming that the home buyer use a conventional home loan with 20% down payment of $67,972). Every Southern California county experienced lower affordability than the previous quarter because of higher home prices; another article indicated that home prices increased 19% from home sales data in October 2011.
Long Beach median-price: $376,000
Carson median-price: $285,900
Lakewood median-price: $365,000
Signal Hill median-price: $397,500
Cerritos median- price: $540,000
Are you waiting for home prices to drop before you buy?
Call me today for information on how to start the home buying process.
Waiting for the bus picture Photo Credit
Photo credit: bibendum84 / Foter / CC BY-SA
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