Housing Bubble
California's Housing Affordability unchanged as home prices rise
June 13, 2003
LOS ANGELES, -- The percentage of households in California able to afford a median-priced home was at 27 percent in April, unchanged compared to the same period a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.). The April Housing Affordability Index (HAI) decreased one percentage point from 28 percent in March 2003.
The minimum household income needed to purchase a median-priced home at $363,930 in California in April was $84,480, based on a typical 30-year, fixed-rate mortgage at 5.72 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $81,760 in April 2002, when the median price of a home was $317,120 and the prevailing interest rate was 6.95 percent.
At 64 percent, the High Desert was the most affordable region in the state, followed by Sacramento at 42 percent. Santa Barbara was the least affordable region in the state at 13 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 May 2003 sales and median price report for the state and regions within the state will be released on June 25.
The California Association of REALTORS® is one of the largest state trade organizations in the United States, with more than 115,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
California Housing Affordability Index
Apr-03 Mar-03 Apr-02 California 27 28 27 California - Condos 41 41 41 United States 59 59 56 C.A.R. REGION Central Valley 39 39 r 42 High Desert 64 65 67 Los Angeles 29 31 31 Monterey 16 18 17 Northern California 31 32 35 Northern Wine Country 17 19 17 Orange County 21 22 23 Palm Sprgs/Lwr Desert 19 19 20 Riverside/SBernardino 39 41 45 Sacramento 42 43 46 San Diego 22 21 22 San Francisco Bay Area 19 19 17 San Luis Obispo 17 19 21 Santa Barbara 13 21 10 r Santa Clara 26 25 21 Ventura n.a. n.a. 32 COUNTY Alameda 20 19 17 Contra Costa 10 12 11 Fresno 44 44 52 Kern 57 55 61 Marin 17 17 14 Merced 33 36 40 Riverside 33 34 36 San Bernardino 49 49 53 San Francisco 11 12 13 San Joaquin 32 34 34 San Mateo 18 17 15 Santa Cruz 16 17 16 Sonoma 18 20 17 Stanislaus 38 41 42
* -- percentage of California households that can afford to purchase a
median-priced home
r - revised
Source: California Association of REALTORS
