Industry News

Real estate gets less affordable in California, Realtor group reports

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The percentage of households in California able to afford a median-priced home stood at 14 percent in November, a drop from 19 percent reported in November 2004, according to a report released this week by the California Association of Realtors trade group.   CAR's monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. CAR 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.   The minimum household income needed to purchase a median-priced home at $548,400 in California in November was $133,390, based on an average effective mortgage interest rate of 6.26 percent and assuming a 20 percent down payment, the trade group reported.     At 24 percent, the High Desert region was the most affordable CAR region in the state, followed by the Sacramento region at 19 percent. T...