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| California's Housing Affordability Index Plunges Five Points in August; Affordability Gap Between U.S. and California at 33 Points |
LOS ANGELES, Oct. 9 /PRNewswire/ -- The percentage of households in
California able to afford a median-priced home stood at 23 percent in August,
a 5 percent 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 August Housing Affordability Index
(HAI) declined by 3 percentage point from July when it stood at 26 points.
The minimum household income needed to purchase a median-priced home at
$404,870 in California in August was $93,490, based on a typical 30-year,
fixed-rate mortgage at 5.66 percent and assuming a 20 percent downpayment.
The minimum household income needed to purchase a median-priced home was up
from $82,150 in August 2002, when the median price of a home was $334,270 and
the prevailing interest rate was 6.38 percent. The minimum household income
needed to purchase a median-priced home at $177,500 in the U.S. in August was
$40,990.
At 60 percent, the High Desert was the most affordable region in the
state, followed by Sacramento at 39 percent. The Santa Barbara Region was the
least affordable region in the state at 14 percent, followed by the Northern
Wine Country Region at 15 percent.
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.
C.A.R.'s September 2003 sales and median price report for the state and
regions within the state will be released on Oct. 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
130,000 members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los Angeles.
CALIFORNIA HOUSING AFFORDABILITY INDEX *
Aug-03 Jul-03 Aug-02
California 23 26 28
California - Condos 38 40 45
United States 56 56 56
C.A.R. REGION
Central Valley 36 37 40
High Desert 60 63 66
Los Angeles 24 26 29r
Monterey Region n.a. n.a. 17
Northern California n.a. 30 35
Northern Wine Country 15 17 18
Orange County 18 21 23
Palm Sprgs/Lwr Desert 19 21 25
Riverside/SBernardino n.a. 36 45
Sacramento 39 42 42r
San Diego 17 19 20
San Francisco Bay Area n.a. n.a. 20
San Luis Obispo 18 19 20
Santa Barbara 14 14 16r
Santa Clara 26 28r 25
Ventura 24 27 30
COUNTY
Alameda 20 20 19
Contra Costa 11 13 11
Fresno 40 42 47
Kern 50 53 56
Marin 18 18 17
Merced 30 33 39
Riverside 31 33 39
San Bernardino 44 45 52
San Francisco 12 12 14
San Joaquin 29 31 31
San Mateo 18 18r 17
Santa Cruz 18 19r 16
Sonoma 16 17 18
Stanislaus 35 37 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
