Housing Bubble
California Housing Affordability falls 5 points in November
The percentage of households in California able to afford a median-priced home decreased by five percentage points in November compared to a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.).
The November 2002 Housing Affordability Index (HAI) stood at 30 percent, down five points from 35 percent in November 2001, according to C.A.R. The November HAI was unchanged from 30 percent in October 2002.
The minimum household income needed to purchase a median-priced home at $328,310 in California in November was $78,630 based on a typical 30-year, fixed-rate mortgage at 6.08 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $67,770 in November 2001, when the median price of a home was $270,210 and the prevailing interest rate was 6.62 percent.
At 65 percent, the High Desert was the most affordable region in the state, followed by Riverside/San Bernardino at 44 percent. Monterey was the least affordable region in the state at 19 percent, followed by Santa Barbara 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.
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