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| California's Housing Affordability Index Falls Five Points in December |
Minimum Household Income Needed to Purchase Median-Priced Home at $94,730
LOS ANGELES, Feb. 5 /PRNewswire/ -- The percentage of households in
California able to afford a median-priced home stood at 23 percent in
December, a 5 percentage-point decrease compared to the same period a year ago
when the Index was at 28 percent, according to a report released today by the
California Association of REALTORS(R) (C.A.R.). The December Housing
Affordability Index (HAI) declined two points from October, when it 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
$404,520 in California in December was $94,730, based on a typical 30-year,
fixed-rate mortgage at 5.82 percent and assuming a 20 percent downpayment.
The minimum household income needed to purchase a median-priced home was up
from $81,290 in December 2002, when the median price of a home was $338,840
and the prevailing interest rate was 6.10 percent. The minimum household
income needed to purchase a median-priced home at $173,200 in the U.S. in
December 2003 was $40,560.
At 57 percent, the High Desert region was the most affordable C.A.R.
region in the state, followed by the Sacramento region at 36 percent. The
Northern Wine Country and San Diego regions were the least affordable in the
state at 15 percent.
C.A.R.'s 4th Quarter/Annual 2003 sales and median price report for the
state and regions within the state will be released on Feb.12.
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 *
Dec-03 Nov-03 Dec-02
California 23 25 28
California - Condos 35 36 42
United States 57 57 58
C.A.R. REGION
Central Valley 34 34 r 39
High Desert 57 57 65
Los Angeles 23 23 31
Monterey Region 16 17 20
Northern California 27 27 35
Northern Wine Country 15 15 21
Orange County 18 18 25
Palm Springs/Lower Desert 17 20 21
Riverside/San Bernardino 33 34 46
Sacramento 36 38 43
San Diego 15 16 22
San Francisco Bay Area 19 19 22
San Luis Obispo 16 19 22
Santa Barbara County 20 21 21
Santa Clara 26 27 28
Ventura 24 24 30
COUNTY
Alameda 20 20 22
Contra Costa 12 13 12
Fresno 36 37 48
Marin 17 18 21
Merced 29 30 36
Riverside 28 31 37
San Bernardino 39 43 51
San Francisco 12 12 15
San Joaquin 29 28 r 33
San Mateo 18 18 21
Santa Cruz 18 19 20
Sonoma 15 16 22
Stanislaus 33 36 r 39
* -- percentage of California households that can afford to purchase a
median-priced home
r -- revised Source: California Association of REALTORS(R)
For further information, please contact Mark Giberson of California
Association of Realtors, +1-213-739-8304, markg@car.org .
SOURCE California Association of Realtors
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CONTACT:
Mark Giberson of California Association of
Realtors, +1-213-739-8304, markg@car.org
