Real estate gets less affordable in California, Realtor group reports

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. The Northern Wine Country, San Luis Obispo and Santa Barbara regions were the least affordable in the state at 7 percent.

Median home prices fell about 2.9 percent in Santa Barbara County area in November 2005 compared to November 2004, CAR reported, from $668,750 in November 2004 to $650,000, but prices increased in all of the other areas covered in the report.

CAR’s December 2005 sales and median price report for the state and regions within the state will be released on Wednesday, Jan. 25.

The California Association of Realtors is one of the largest state trade organizations in the United States, with about 185,000 members.

CAR HOUSING AFFORDABILITY INDEX