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| California's Housing Affordability Index Falls Six Points in January; Minimum Household Income Needed to Purchase Median-Priced Home at $94,020 |
LOS ANGELES, March 4 /PRNewswire/ -- The percentage of households in
California able to afford a median-priced home stood at 23 percent in January,
a 6 percentage-point decrease compared to the same period a year ago when the
Index was at 29 percent, according to a report released today by the
California Association of REALTORS(R) (C.A.R.). The January Housing
Affordability Index (HAI) was unchanged from December, when it also 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
$405,720 in California in January was $94,020, based on a typical 30-year,
fixed-rate mortgage at 5.70 percent and assuming a 20 percent downpayment.
The minimum household income needed to purchase a median-priced home was up
from $79,690 in January 2003, when the median price of a home was $336,210 and
the prevailing interest rate was 5.96 percent. The minimum household income
needed to purchase a median-priced home at $168,700 in the U.S. in January
2004 was $39,090.
At 56 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
Monterey region was the least affordable in the state at 14 percent.
C.A.R.'s February 2004 sales and median price report for the state and
regions within the state will be released on March 25.
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 *
Jan-04 Dec-03 Jan-03
California 23 23 29
California - Condos 37 35 42
United States 59 56r 59
C.A.R. REGION
Central Valley 36 33r 40
High Desert 56 57 65
Los Angeles 22 23 30
Monterey Region 14 16 19
Northern California 29 27 36
Northern Wine Country 16 15 20
Orange County 20 18 25
Palm Sprgs/Lwr Desert 16 17 22
Riverside/SBernardino 34 33 45
Sacramento 38 37r 43r
San Diego 16 15 22
San Francisco Bay Area 21 19 25
San Luis Obispo 17 16 22
Santa Barbara County n.a. 19r 21
Santa Clara 29 26 31
Ventura n.a. 23r 31r
COUNTY
Alameda 21 20 24
Contra Costa 14 12 16
Fresno 42 36 46
Marin 19 17 21
Merced 31 29 32
Riverside 27 28 38
San Bernardino 41 39 48
San Francisco 12 12 15
San Joaquin 30 29 33
San Mateo 18 18 20
Santa Cruz 18 18 20
Sonoma 16 15 21
Stanislaus 35 33 40
* -- percentage of California households that can afford to purchase a
median-priced home
r -- revised Source: California Association of REALTORS(R)
SOURCE California Association of REALTORS
back to topRelated links:
CONTACT:
Mark Giberson of California Association of
REALTORS, +1-213-739-8304, markg@car.org
