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| California's Housing Affordability Index Falls Six Points in February; Minimum Household Income Needed to Purchase Median-Priced Home at $91,690 |
LOS ANGELES, April 8 /PRNewswire/ -- 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 report released today by the
California Association of REALTORS(R) (C.A.R.). 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.
Note: The 2004 Housing Affordability Index calculations are based on
revised income distribution ranges as set forth by the US Census Bureau.
C.A.R.'s March 2004 sales and median price report for the state and
regions within the state will be released on Monday, April 27.
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 Feb-04 Jan-04 Feb-03
California 24 23 30
California - Condos 34 37 41
United States 59 58r 59
Central Valley 34 35r 40
High Desert 55 56 65
Los Angeles 22 22 31
Monterey Region 16 14 17
Northern California 30 29 35
Northern Wine Country 15 16 18
Orange County 17 20 21
Palm Sprgs/Lwr Desert n.a. 16 22
Riverside/SBernardino 31 34 40
Sacramento 35 38 43
San Diego 15 16 22
San Francisco Bay Area n.a. 21 22
San Luis Obispo 14 17 18
Santa Barbara County 16 n.a. 18
Santa Clara 27 29 25
Ventura 22 24r 32
COUNTY
Alameda n.a. 21 21
Contra Costa 10 14 13
Fresno 35 42 46
Marin 18 19 17
Merced 33 31 34
Riverside 30 27 36
San Bernardino 38 41 50
San Francisco 12 12 11
San Joaquin 29 30 34
San Mateo 18 18 18
Santa Cruz 17 18 16
Sonoma 16 16 19
Stanislaus 35 35 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(R)
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CONTACT:
media, Mark Giberson of California
Association of REALTORS(R), +1-213-739-8304, markg@car.org
