The percentage of households in California able to afford a median-priced home stood at 19 percent in November, unchanged from the previous month, but down 6 percentage points from 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 $473,260 in California in November was $109,670, based on an average effective mortgage interest rate of 5.7 percent and assuming a 20 percent down payment. This figure was up from $90,270 in November 2003, when the median price of a home was $384,470 and the prevailing interest rate was 5.85 percent.
By contrast, the minimum household income needed to purchase a median-priced home at $188,200 in the United States in November 2004 was $43,610.
At 40 percent, the High Desert region was the most affordable in the state, followed by the Central Valley region at 25 percent. The Santa Barbara region was the least affordable in the state at 7 percent, followed by the Monterey region at 11 percent.
Los Angeles-based C.A.R. is a state trade organization with more than 155,000 members.
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