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| California's Housing Affordability Index Falls Seven Points in March; Minimum Household Income Needed to Purchase Median-Priced Home Just Under $100,000 |
LOS ANGELES, May 6 /PRNewswire/ -- The percentage of households in
California able to afford a median-priced home stood at 21 percent in March, a
7 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 March Housing
Affordability Index (HAI) declined three points compared to February, when it
stood at 24 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
$428,280 in California in March was $97,340, based on a typical 30-year,
fixed-rate mortgage at 5.48 percent and assuming a 20 percent downpayment.
The minimum household income needed to purchase a median-priced home was up
from $82,080 in March 2003, when the median price of a home was $351,130 and
the prevailing interest rate was 5.80 percent.
The minimum household income needed to purchase a median-priced home at
$174,100 in the U.S. in March 2004 was $39,570.
At 53 percent, the High Desert region was the most affordable C.A.R.
region in the state, followed by the Sacramento region at 34 percent. The
Monterey, Northern Wine Country, Orange County and Santa Barbara County
regions were the least affordable in the state at 14 percent.
C.A.R.'s First Quarter 2004 sales and median price report for the state
and regions within the state will be released on May 12, followed by the April
2004 sales and median price report on May 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.
C.A.R. HOUSING AFFORDABILITY INDEX *
C.A.R. REGION Mar-04 Feb-04 Mar-03
California 21 24 28
California -- Condos 31 33r 41
United States 58 59 59
Central Valley 33 34 39
High Desert 53 55 65
Los Angeles 23 22 31
Monterey Region 14 16 18
Northern California 25 27r 32
Northern Wine Country 14 15 19
Orange County 14 17 22
Palm Springs/Lower Desert n.a. n.a. 19
Riverside/San Bernardino 29 32r 41
Sacramento 34 36r 43
San Diego 15 15 21
San Francisco Bay Area n.a. n.a. 19
San Luis Obispo 20 14 19
Santa Barbara County 14 18r 15r
Santa Clara 23 27 25
Ventura n.a. 22 31r
COUNTY
Alameda n.a. n.a. 19
Contra Costa n.a. 10 12
Fresno 35 35 44
Marin 17 18 17
Merced 31 33 36
Riverside 27 30 34
San Bernardino 36 38 49
San Francisco 12 12 12
San Joaquin 28 29 34
San Mateo 17 18 17
Santa Cruz 17 17 17
Sonoma 16 16 20
Stanislaus 35 35 41
* -- 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
