Housing Bubble
California housing affordability falls five points in December C.A.R reports
February 06, 2003
The percentage of households in California able to afford a median-priced home decreased by five percentage points in December compared to a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.).
The December 2002 Housing Affordability Index (HAI) stood at 28 percent, down five points from a revised 33 percent in December 2001, according to C.A.R. The December HAI decreased two percentage points from 30 percent in November 2002.
The minimum household income needed to purchase a median-priced home at $338,110 in California in December was $81,120, based on a typical 30-year, fixed-rate mortgage at 6.10 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $71,450 in December 2001, when the median price of a home was $281,330 and the prevailing interest rate was 6.77 percent.
At 65 percent, the High Desert was the most affordable region in the state, followed by Riverside/San Bernardino at 46 percent. Monterey and Santa Barbara were the least affordable regions in the state at 20 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.
CALIFORNIA HOUSING AFFORDABILITY INDEX *
C.A.R. REGION Dec-02 Nov-02 Dec-01
California 28 30 33 r
California - Condos 42 41 46
United States 57 58 57
Central Valley 39 40 47
High Desert 65 65 69 r
Los Angeles 31 30 36
Monterey Region 20 19 21
Northern California 35 34 41
Northern Wine Country 21 21 24
Orange County 25 25 31
Palm Springs/Lower Desert 21 24 29
Riverside/San Bernardino 46 44 49 r
Sacramento 43 43 51
San Diego 22 22 27
San Francisco Bay Area 23 22 24
San Luis Obispo 22 23 29
Santa Barbara 20 20 22
Santa Clara 28 28 29
Ventura n.a. 32 39 r
COUNTY
Alameda 22 22 25
Contra Costa 12 14 18
Fresno 48 46 52
Kern 56 56 63
Marin 21 18 20
Merced 36 34 50 r
Riverside 37 37 44 r
San Bernardino 51 50 53 r
San Francisco 15 14 15
San Joaquin 33 33 37
San Mateo 21 19 20
Santa Cruz 20 20 21
Sonoma 22 22 24
Stanislaus 39 40 46
* -- percentage of California households that can afford to purchase a
median-priced home
r -- revised
Source: California Association of REALTORS
