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| California's Housing Affordability Index Falls Five Points in November |
Minimum Household Income Needed to Purchase Median-Priced Home at $90,800
LOS ANGELES, Jan. 8 /PRNewswire/ -- The percentage of households in
California able to afford a median-priced home stood at 25 percent in
November, a 5 percentage-point decrease compared to the same period a year ago
when the Index was at 30 percent, according to a report released today by the
California Association of REALTORS(R) (C.A.R.). The November Housing
Affordability Index (HAI) was unchanged from October, when it also stood at 25
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
$386,760 in California in November was $90,800, based on a typical 30-year,
fixed-rate mortgage at 5.85 percent and assuming a 20 percent downpayment.
The minimum household income needed to purchase a median-priced home was up
from $78,663 in November 2002, when the median price of a home was $328,440
and the prevailing interest rate was 6.08 percent. The minimum household
income needed to purchase a median-priced home at $170,900 in the U.S. in
November 2003 was $40,120.
At 57 percent, the High Desert region was the most affordable C.A.R.
region in the state, followed by the Sacramento region at 38 percent. The
Northern Wine Country region was the least affordable in the state at 15
percent, followed by the San Diego region at 16 percent.
C.A.R.'s December 2003 sales and median price report for the state and
regions within the state will be released on Jan. 26.
The California Association of REALTORS(R) ( http://www.car.org ) is one of
the largest state trade organizations in the United States, with more than
135,000 members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los Angeles.
CALIFORNIA HOUSING AFFORDABILITY INDEX *
C.A.R. REGION Nov-03 Oct-03 Nov-02
California 25 25 30
California -- Condos 36 37 41
United States 57 57 58
Central Valley n.a. 35 40
High Desert 57 58 64 r
Los Angeles 23 24 29 r
Monterey Region 17 17 19
Northern California 27 27 34
Northern Wine Country 15 16 21
Orange County 18 18 25
Palm Springs/Lower Desert 20 19 24
Riverside/San Bernardino 34 33 44
Sacramento 38 38 43
San Diego 16 16 22
San Francisco Bay Area 19 19 22
San Luis Obispo 19 18 23
Santa Barbara County 21 20 22 r
Santa Clara 27 26 28
Ventura 24 25 32
COUNTY
Alameda 20 20 22
Contra Costa 13 12 14
Fresno 37 41 46
Marin 18 19 18
Merced 30 27 34
Riverside 31 29 37
San Bernardino 43 39 50
San Francisco 12 12 14
San Joaquin n.a. 28 34 r
San Mateo 18 18 19
Santa Cruz 19 18 20
Sonoma 16 16 22
Stanislaus n.a. 36 40
* -- percentage of California households that can afford to purchase a
median-priced home
r -- revised
SOURCE California Association of REALTORS
back to topRelated links:
CONTACT:
Mark Giberson of California Association of
REALTORS, +1-213- 739-8304, markg@car.org
