The percentage of households in California able to afford a median-priced home stood at 24 percent in February, a 6 percentage-point decrease compared to the same period a year ago when the Index was at 30 percent, according to a recent C.A.R. report. The February Housing Affordability Index (HAI) improved one point compared to January, when it stood at 23 points. C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.
The minimum household income needed to purchase a median-priced home at $394,300 in California in February was $91,690, based on a typical 30-year, fixed-rate mortgage at 5.74 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $77,220 in February 2003, when the median price of a home was $326,640 and the prevailing interest rate was 5.93 percent. The minimum household income needed to purchase a median-priced home at $168,100 in the U.S. in February 2004 was $39,090.
At 55 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 35 percent. The San Luis Obispo region was the least affordable in the state at 14 percent.
Posted by gandlwoods at April 19, 2004 08:39 AM