Industry News

Real estate buying power stands pat in California

23% of households can afford $405,720 median price in January

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The percentage of households in California able to afford a median-priced home stood at 23 percent in January, unchanged from December, but represented a 6 percentage-point decrease compared to the same period a year ago, according to a report released today by the California Association of Realtors. The minimum household income needed to purchase a median-priced home at $405,720 in California in January was $94,020, based on a typical 30-year, fixed-rate mortgage at 5.7 percent and assuming a 20 percent down payment. The minimum household income needed to purchase a median-priced home was up from $79,690 in January 2003, when the median price of a home was $336,210 and the prevailing interest rate was 5.96 percent. The minimum household income needed to purchase a median-priced home at $168,700 in the U.S. in January 2004 was $39,090. At 56 percent, the High Desert region was the most affordable region in the state, followed by the Sacramento region at 38 percent. The Monterey r...