Housing affordability has worsened in California during the first six months of 2017
Housing affordability has worsened in California during the first six months of 2017.
Data from the California Association of Realtors shows that just 29% of households could afford the $553,260 median-priced home in the second quarter compared to 32% in the first three months.
Home prices have nearly doubled since affordability reached its highest level five years ago, and compared to then, home buyers now need twice the income to purchase a median-priced home. In the first quarter of 2012, buyers statewide needed a minimum annual income of $56,320 to purchase a home that was priced $279,190.
In the second quarter of 2017, an annual income of $110,890 was needed to afford the mortgage payments of $2,770 per month based on a 30-year FRM at 4.09% interest rate including taxes.
Affordability of condos and townhomes was slightly better with 38% being able to afford the median $443,400 home with monthly mortgage payments of $2,220.
During the second quarter of 2017, the most affordable counties in California were Tehama (57%), Kern (54%), Sutter (53%), Kings and Tulare (both at 52%).
Meanwhile, San Francisco (12%), San Mateo (14%), and Santa Barbara (16%), Santa Clara and Santa Cruz (both at 17%) counties were the least affordable areas in the state.
Data from the California Association of Realtors shows that just 29% of households could afford the $553,260 median-priced home in the second quarter compared to 32% in the first three months.
Home prices have nearly doubled since affordability reached its highest level five years ago, and compared to then, home buyers now need twice the income to purchase a median-priced home. In the first quarter of 2012, buyers statewide needed a minimum annual income of $56,320 to purchase a home that was priced $279,190.
In the second quarter of 2017, an annual income of $110,890 was needed to afford the mortgage payments of $2,770 per month based on a 30-year FRM at 4.09% interest rate including taxes.
Affordability of condos and townhomes was slightly better with 38% being able to afford the median $443,400 home with monthly mortgage payments of $2,220.
During the second quarter of 2017, the most affordable counties in California were Tehama (57%), Kern (54%), Sutter (53%), Kings and Tulare (both at 52%).
Meanwhile, San Francisco (12%), San Mateo (14%), and Santa Barbara (16%), Santa Clara and Santa Cruz (both at 17%) counties were the least affordable areas in the state.
