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C.A.R. reports entry-level housing affordability at 25 percent in California

By
Real Estate Agent with RE/MAX All Stars

LOS ANGELES (May 17) The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the first quarter of 2007, compared with 26 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 $480,670 in California in the first quarter of 2007 was $96,910, based on an adjustable interest rate of 6.3 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 $3,230 for the first quarter of 2007.

At 44 percent, the High Desert region was the most affordable in the state, followed by the Sacramento region at 43 percent. Santa Barbara was the least affordable region in the state at 12 percent, followed by the Monterey region at 19 percent.

Quarterly FTB-HAI historical data from 2003 - 2007 is available on C.A.R. Online at http://www.car.org/index.php?id=MzY0ODU.

Leading the way...® in real estate news and information for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with nearly 200,000 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 *

 

 

Q1 2007

Q4 2006

  

Q1 2006

 

California

25

25

 

26

 

California - Condos

38

37

 

36

 

United States

64

62

r

63

r

C.A.R. REGION

 

 

 

 

 

Central Valley

41

39

r

38

r

High Desert

44

41

 

41

 

Los Angeles County

20

19

 

21

 

Monterey Region

19

19

r

19

 

Northern California

37

37

 

32

 

Northern Wine Country

24

24

 

22

r

Orange County

25

24

 

23

 

Palm Sprgs/Lwr Desert

32

33

r

30

 

Riverside/SBernardino

36

34

r

35

r

Sacramento County

43

41

 

40

r

San Diego County

23

23

 

22

r

San Francisco Bay

24

25

r

25

r

San Luis Obispo County

21

22

 

18

 

Santa Barbara Area

12

19

 

13

r

Santa Clara County

27

29

r

29

r

Southern California

25

25

r

26

r

Ventura County

26

26

r

25

r

COUNTY

 

 

 

 

 

Alameda

25

25

r

25

r

Contra Costa

19

26

 

21

r

Fresno

44

42

r

41

r

Marin

21

22

r

21

r

Merced

46

41

r

37

r

Riverside

35

34

r

33

r

San Bernardino

39

36

 

39

 

San Francisco

18

19

 

20

r

San Joaquin

38

34

r

34

r

San Mateo

19

20

r

20

r

Santa Cruz

20

21

r

21

 

Sonoma

26

25

r

24

 

Stanislaus

40

37

r

37

r

* -- percentage of California households that can afford to purchase a median-priced home
Source:  CALIFORNIA ASSOCIATION OF REALTORS®

 

 

Housing
Affordability Index

First-Time Buyer
Median Price
Q1 2007

Monthly Payment Including Taxes & Insurance

Minimum
Qualifying Income

California

25

$480,670

$3,230

$96,910

California - Condos

38

$363,210

$2,440

$73,230

United States

64

$180,460

$1,210

$36,380

C.A.R. REGION

 

 

 

 

Central Valley

41

$284,800

$1,910

$57,420

High Desert

44

$271,430

$1,820

$54,730

Los Angeles County

20

$501,390

$3,370

$101,090

Monterey Region

19

$604,970

$4,070

$121,980

Northern California

37

$332,140

$2,230

$66,970

Northern Wine Country

24

$504,950

$3,390

$101,810

Orange County

25

$592,660

$3,980

$119,490

Palm Sprgs/Lwr Desert

32

$320,120

$2,150

$64,540

Riverside/SBernardino

36

$343,770

$2,310

$69,310

Sacramento County

43

$310,670

$2,090

$62,640

San Diego County

23

$505,890

$3,400

$102,000

San Francisco Bay

24

$635,910

$4,270

$128,210

San Luis Obispo County

21

$480,280

$3,230

$96,830

Santa Barbara Area

12

$702,580

$4,720

$141,660

Santa Clara County

27

$669,800

$4,500

$135,050

Southern California

25

$474,960

$3,190

$95,760

Ventura County

26

$571,860

$3,840

$115,300

COUNTY

 

 

 

 

Alameda

25

$569,230

$3,830

$114,770

Contra Costa

19

$700,690

$4,710

$141,270

Fresno

44

$242,290

$1,630

$48,850

Marin

21

$839,010

$5,640

$169,160

Merced

46

$235,220

$1,580

$47,420

Riverside

35

$354,340

$2,380

$71,440

San Bernardino

39

$315,960

$2,120

$63,710

San Francisco

18

$704,230

$4,730

$141,990

San Joaquin

38

$323,530

$2,170

$65,230

San Mateo

19

$748,000

$5,030

$150,810

Santa Cruz

20

$626,450

$4,210

$126,310

Sonoma

26

$500,400

$3,360

$100,890

Stanislaus

40

$298,030

$2,000

$60,090


Source:  CALIFORNIA ASSOCIATION OF REALTORS®

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