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Entry-level housing affordability at 25 percent in California

March 8th, 2007 11:28 AM

Thursday, March 1, 2007

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

LOS ANGELES (March 1) The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the fourth quarter of 2006, compared with 27 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 $477,400 in California in the fourth quarter of 2006 was $96,760, based on an adjustable interest rate of 6.36 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 fourth quarter of 2006.

At 41 percent, the High Desert and Sacramento regions were the most affordable C.A.R. regions in the state. Santa Barbara and Los Angeles were the least affordable regions in the state at 19 percent.

Quarterly FTB-HAI historical data from 2003 – 2006 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® (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 *

	Q4 2006	Q3 2006	Q4 2005
California	25	24	27
California - Condos	37	35	37
United States	61	59	61
C.A.R. REGION
Central Valley	38	36	37
High Desert	41	39	43
Los Angeles County	19	19	21
Monterey Region	20	17	19
Northern California	37	33	32
Northern Wine Country	24	22	23
Orange County	24	22	24
Palm Sprgs/Lwr Desert	32	32	33
Riverside/SBernardino	33	31	36
Sacramento County	41	38	40
San Diego County	23	21	22
San Francisco Bay	26	25	28
San Luis Obispo County	22	18	19
Santa Barbara Area	19	14	19
Santa Clara County	30	27	32
Southern California	24	23	27
Ventura County	25	22	25
COUNTY
Alameda	26	24	26
Contra Costa	26	27	29
Fresno	41	39	40
Marin	23	22	23
Merced	39	39	35
Riverside	33	31	35
San Bernardino	36	36	40
San Francisco	19	17	21
San Joaquin	26	27	33
San Mateo	21	20	23
Santa Cruz	22	18	21
Sonoma	26	24	24
Stanislaus	36	35	36

* -- 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 Q42006	Monthly Payment Including Taxes & Insurance	Minimum Qualifying Income
California	25	$477,400	$3,230	$96,760
California - Condos	37	$360,160	$2,430	$73,000
United States	61	$186,410	$1,260	$37,780
C.A.R. REGION
Central Valley	38	$290,770	$1,960	$58,930
High Desert	41	$279,480	$1,890	$56,650
Los Angeles County	19	$498,510	$3,370	$101,040
Monterey Region	20	$595,780	$4,030	$120,750
Northern California	37	$330,530	$2,230	$66,990
Northern Wine Country	24	$511,990	$3,460	$103,770
Orange County	24	$587,100	$3,970	$118,990
Palm Sprgs/Lwr Desert	32	$305,140	$2,060	$61,850
Riverside/SBernardino	33	$345,470	$2,330	$70,020
Sacramento County	41	$310,340	$2,100	$62,900
San Diego County	23	$492,810	$3,330	$99,880
San Francisco Bay	26	$623,370	$4,210	$126,350
San Luis Obispo County	22	$460,890	$3,110	$93,410
Santa Barbara Area	19	$552,120	$3,730	$111,900
Santa Clara County	30	$646,000	$4,360	$130,930
Southern California	24	$467,800	$3,160	$94,810
Ventura County	25	$568,230	$3,840	$115,170
COUNTY
Alameda	26	$568,880	$3,840	$115,300
Contra Costa	26	$615,580	$4,160	$124,770
Fresno	41	$242,160	$1,640	$49,080
Marin	23	$803,590	$5,430	$162,870
Merced	39	$252,340	$1,700	$51,140
Riverside	33	$350,000	$2,360	$70,940
San Bernardino	36	$323,130	$2,180	$65,490
San Francisco	19	$713,700	$4,820	$144,650
San Joaquin	26	$337,840	$2,280	$68,470
San Mateo	21	$727,600	$4,920	$147,470
Santa Cruz	22	$614,550	$4,150	$124,560
Sonoma	26	$514,540	$3,480	$104,290
Stanislaus	36	$307,380	$2,080	$62,300

Source: CALIFORNIA ASSOCIATION OF REALTORS®

Posted by Gail McClendon on March 8th, 2007 11:28 AMPost a Comment (0)