For release: Thursday, Nov. 29, 2007 C.A.R. reports entry-level housing affordability at 24 percent in California
LOS ANGELES (Nov. 29) The percentage of households that could afford to buy an entry-level home in California stood at 24 percent in the third quarter of 2007, unchanged from 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 $482,910 in California in the third quarter of 2007 was $99,590, based on an adjustable interest rate of 6.56 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 $3,320 for the third quarter of 2007.
At 48 percent, the High Desert region was the most affordable in the state, followed by the Sacramento region at 46 percent. Santa Barbara was the least affordable region in the state at 11 percent, followed by the Monterey region at 16 percent. Leading the way...® in real estate news and information 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 nearly 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX *
Q3 2007
Q2 2007
Q3 2006R
California
24
California - Condos
38
36
35
United States
61
62
60
r
C.A.R. REGION
Central Valley
NA
42
37
High Desert
48
45
39
Los Angeles County
20
19
Monterey Region
16
17
Northern California
34
Northern Wine Country
23
22
Orange County
Palm Sprgs/Lwr Desert
33
31
Riverside/SBernardino
32
Sacramento County
46
44
San Diego County
21
San Francisco Bay
18
San Luis Obispo County
Santa Barbara Area
11
12
14
Santa Clara County
26
Southern California
Ventura County
25
COUNTY
Alameda
Contra Costa
Fresno
40
Marin
Merced
41
Riverside
San Bernardino
28
San Francisco
15
San Joaquin
San Mateo
Santa Cruz
Sonoma
Stanislaus
* -- percentage of California households that can afford to purchase a median-priced home
r – revised
Source: CALIFORNIA ASSOCIATION OF REALTORS®
Housing Affordability Index
First-Time Buyer Median Price Q3 2007
Monthly Payment Including Taxes & Insurance
Minimum Qualifying Income
$482,910
$3,320
$99,588
$358,650
$2,465
$73,963
$187,680
$1,290
$38,704
$243,110
$1,671
$50,135
$500,130
$3,438
$103,139
$646,410
$4,444
$133,306
$322,950
$2,220
$66,600
$503,160
$3,459
$103,764
$595,550
$4,094
$122,817
$314,820
$2,164
$64,924
$320,370
$2,202
$66,068
$285,340
$1,961
$58,844
$500,910
$3,443
$103,300
$701,590
$4,823
$144,686
$486,980
$3,348
$100,428
$709,870
$4,880
$146,393
$724,630
$4,981
$149,437
$477,790
$3,284
$98,532
$575,960
$3,959
$118,777
$594,350
$4,086
$122,570
$742,220
$5,102
$153,064
$235,360
$1,618
$48,537
$864,990
$5,946
$178,383
$219,940
$1,512
$45,357
$341,760
$2,349
$70,480
$278,970
$1,918
$57,531
$744,180
$5,116
$153,469
$0
$816,000
$5,609
$168,280
$656,200
$4,511
$135,325
$504,460
$3,468
$104,032
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