Industry News

California real estate affordability falls

Home prices jump over 35% in Santa Barbara

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

An affordability index produced by the California Association of Realtors trade group held steady from November to December but was down 5 percentage points since December 2004. The percentage of households in California able to afford a median-priced home stood at 14 percent in December, compared with 19 percent for the same period a year ago, the group reported today. C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The minimum household income needed to purchase a median-priced home at $548,430 in California in December was $134,200, based on an average effective mortgage interest rate of 6.33 percent and assuming a 20 percent down payment, C.A.R. reported. At 24 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 pe...