C.A.R. Survey Reveals California Households Fall $41,360 Short in Income Needed to Purchase Home

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C.A.R. Survey Reveals California Households Fall $41,360 Short in Income Needed to Purchase Home

               Income Gap in San Francisco Bay Area at $68,920

    LOS ANGELES, April 29 /PRNewswire/ -- California households, with a median
household income of $52,320, are $41,360 short of the $93,680 qualifying
income needed to purchase a median-priced home at $406,390 in California,
according to the California Association of REALTORS(R) (C.A.R.) Homebuyer
Income Gap Index(TM) (HIGI) report for the first quarter of 2004, released
today.
    The association's Homebuyer Income Gap Index(TM) is a quarterly analysis
of the difference between the median household income and the qualifying
income needed to purchase a median-priced, single-family home for the state
and for select regions within the state.
    The Homebuyer Income Gap Index(TM) for California increased 45 percent
during the first quarter of 2004 compared to the first quarter of 2003, when
the gap stood at $28,530, the median household income was $51,180, and
qualifying income needed to purchase a median-priced home at $338,010 was
$79,710.
    According to the report, potential homebuyers in the Central Valley, with
a median household income of $40,250, had the smallest income gap at $16,410,
and needed qualifying income of $56,660 to purchase a median-priced home at
$245,790.
    The San Francisco Bay Area had the highest gap in the state at $68,920,
where potential homebuyers had a median household income of $69,810 but needed
qualifying income of $138,730 to purchase a median-priced home at $601,820.

    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.



                          Homebuyer Income Gap Index(TM)

                                      Median
    First Quarter 2004    Median    Household  Monthly  Qualifying  Income
                        Home Price    Income   Payment    Income      Gap
    California           $406,390    $52,320    $1,870   $93,680   ($41,360)
    California - Condos  $319,850    $52,320    $1,480   $73,730   ($21,410)
    Central Valley       $245,790    $40,250    $1,130   $56,660   ($16,410)
    San Francisco
     Bay Area            $601,820    $69,810    $2,780  $138,730   ($68,920)
    Southern California  $398,030    $50,990    $1,840   $91,750   ($40,760)


    First Quarter 2003
    California           $338,010    $51,180    $1,840   $79,710   ($28,530)
    California - Condos  $261,260    $51,180    $1,400   $61,610   ($10,430)
    Central Valley       $206,820    $39,520    $1,110   $48,770    ($9,250)
    San Francisco
     Bay Area            $508,960    $65,940    $2,700  $120,020   ($54,080)
    Southern California  $323,590    $50,130    $1,750   $76,300   ($26,170)

SOURCE California Association of REALTORS

http://www.car.org
CONTACT:
Mark Giberson of California Association of
REALTORS, +1-213-739-8304, markg@car.org