Housing Affordability Index – Shows that now is the time to buy
C.A.R.'s Traditional Housing Affordability Index (HAI) measures the percentage of households that can afford to purchase the median priced home in the state and regions of California based on traditional assumptions. C.A.R. also reports its traditional and first-time buyer indexes for regions and select counties within the state. The HAI is the most fundamental measure of housing well-being for buyers in the state. Traditional Housing Affordability Index Methodology.
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2012 Q2 |
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C.A.R. Traditional Housing Affordability Index |
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STATE/REGION/COUNTY |
Q2 2012 |
Q1 2012 |
Q2 2011 |
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CA SFH |
51 |
56 |
51 |
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CA Condo/Townhomes |
62 |
65 |
r |
60 |
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Los Angeles Metropolitan Area |
53 |
56 |
52 |
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Inland Empire |
70 |
71 |
69 |
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S.F. Bay Area |
35 |
45 |
35 |
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US |
67 |
71 |
67 |
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S.F. Bay Area |
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Alameda |
38 |
45 |
35 |
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Contra-Costa (Central County) |
26 |
36 |
26 |
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Marin |
27 |
32 |
24 |
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Napa |
50 |
50 |
47 |
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San Francisco |
24 |
29 |
24 |
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San Mateo |
23 |
33 |
22 |
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Santa Clara |
32 |
42 |
32 |
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Solano |
77 |
77 |
75 |
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Sonoma |
49 |
51 |
46 |
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Southern California |
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Los Angeles |
49 |
51 |
46 |
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Orange County |
35 |
39 |
31 |
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Riverside County |
65 |
66 |
64 |
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San Bernardino |
78 |
78 |
77 |
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San Diego |
44 |
46 |
41 |
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Ventura |
48 |
50 |
41 |
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Central Coast |
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Monterey |
55 |
54 |
56 |
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San Luis Obispo |
41 |
41 |
37 |
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Santa Barbara |
32 |
46 |
34 |
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Santa Cruz |
34 |
35 |
32 |
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Central Valley |
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Fresno |
71 |
72 |
70 |
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Kings County |
75 |
74 |
72 |
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Madera |
74 |
77 |
72 |
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Merced |
77 |
77 |
76 |
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Placer County |
65 |
67 |
64 |
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Sacramento |
74 |
74 |
72 |
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Tulare |
74 |
75 |
73 |
Source: CALIFORNIA ASSOCIATION OF REALTORS®
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C.A.R. Traditional Housing Affordability Index (HAI) |
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|
Year Quarter |
Housing Affordability Index CA SFH |
Median Home Price |
Monthly Payment Including Taxes & Insurance |
Minimum Qualifying Income |
Interest Rate |
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2006 Q1 |
13 |
$ 548,810 |
$ 3,375 |
$ 135,019 |
6.39% |
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2006 Q2 |
12 |
$ 566,800 |
$ 3,557 |
$ 142,270 |
6.63% |
|
2006 Q3 |
12 |
$ 561,560 |
$ 3,563 |
$ 142,504 |
6.76% |
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2006 Q4 |
12 |
$ 561,430 |
$ 3,490 |
$ 139,618 |
6.52% |
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2007 Q1 |
13 |
$ 562,970 |
$ 3,470 |
$ 138,818 |
6.42% |
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2007 Q2 |
11 |
$ 592,420 |
$ 3,668 |
$ 146,701 |
6.47% |
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2007 Q3 |
11 |
$ 574,080 |
$ 3,639 |
$ 145,559 |
6.75% |
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2007 Q4 |
18 |
$ 492,490 |
$ 3,039 |
$ 121,542 |
6.43% |
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2008 Q1 |
26 |
$ 418,230 |
$ 2,493 |
$ 99,737 |
6.03% |
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2008 Q2 |
29 |
$ 386,370 |
$ 2,325 |
$ 93,017 |
6.14% |
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2008 Q3 |
34 |
$ 341,750 |
$ 2,107 |
$ 84,269 |
6.42% |
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2008 Q4 |
43 |
$ 293,960 |
$ 1,753 |
$ 70,102 |
6.03% |
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2009 Q1 |
55 |
$ 247,630 |
$ 1,368 |
$ 54,708 |
5.16% |
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2009 Q2 |
53 |
$ 263,580 |
$ 1,438 |
$ 57,506 |
5.02% |
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2009 Q3 |
48 |
$ 291,000 |
$ 1,627 |
$ 65,096 |
5.30% |
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2009 Q4 |
47 |
$ 303,490 |
$ 1,661 |
$ 66,452 |
5.06% |
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2010 Q1 |
50 |
$ 288,020 |
$ 1,580 |
$ 63,230 |
5.09% |
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2010 Q2 |
46 |
$ 316,090 |
$ 1,732 |
$ 69,273 |
5.07% |
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2010 Q3 |
46 |
$ 316,900 |
$ 1,692 |
$ 67,660 |
4.78% |
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2010 Q4 |
50 |
$ 302,820 |
$ 1,593 |
$ 63,722 |
4.62% |
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2011 Q1 |
53 |
$ 278,520 |
$ 1,500 |
$ 60,110 |
4.90% |
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2011 Q2 |
51 |
$ 293,650 |
$ 1,580 |
$ 63,090 |
4.85% |
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2011 Q3 |
52 |
$ 292,050 |
$ 1,540 |
$ 61,510 |
4.63% |
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2011 Q4 |
55 |
$ 282,560 |
$ 1,440 |
$ 57,740 |
4.30% |
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2012 Q1 |
56 |
$ 276,040 |
$ 1,390 |
$ 55,690 |
4.16% |
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Source: CALIFORNIA ASSOCIATION REALTORS® |
Home buyers needed to earn a minimum annual income of $62,390 to qualify for the purchase of a $316,230 statewide median-priced, existing single-family home in the second quarter of 2012. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,560, assuming a 20 percent down payment and an effective composite interest rate of 3.92 percent. The effective composite interest rate in first-quarter 2012 was 4.16 percent and 4.85 percent in the second quarter of 2011. Home buyers needed to earn a minimum annual income of $62,390 to qualify for the purchase of a $316,230 statewide median-priced, existing single-family home in the second quarter of 2012. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,560, assuming a 20 percent down payment and an effective composite interest rate of 3.92 percent. The effective composite interest rate in first-quarter 2012 was 4.16 percent and 4.85 percent in the second quarter of 2011.
For everyone who has been waiting to buy and missed out due to the high prices of earlier years, Now is the time to buy. Prices have never been so affordable with the combination of the lowest interest rates in 40+ years at about 3.5% for under $415,000, about 4% to conventional plus $615,000 and Jumbo at 4.625% and the affordable prices you can buy the location and floorplan you like and do your upgrades later. Plan on living in your home for at least 7-10 years.
When you buy or sell make sure you use an experienced agent who is responsive, communicative and thinks outside the box. Contact Marlene Dietrich by cell at 949-400-1021 or email at MarleneDietrich@Realtor.com. Marlene, Tony & Mike
Visit us at our website at www.MarleneDietrichNewportCoastRealtor.com
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