AgentMarkets & Economy

California housing affordability improving, CAR says

Twenty two of 29 counties saw an improvement in housing affordability
  • According to CAR’s affordability index , 34 percent of buyers could afford to purchase a median-priced, single-family home in California in Q1 on 2016, compared to 30 percent last quarter.
  • Some of the biggest changes were in the Bay Area, where eight out of nine counties became more affordable for buyers in the first quarter.
  • Every county in Southern California boosted in affordability.
  • In order to purchase a median-priced, single-family home valued at $465,280, buyers needed an annual income of at least $92,571.

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The California Association of Realtors (CAR) says high wages and lower seasonal home prices are contributing to more affordable homes compared to last quarter. However, compared to last year’s numbers, CAR says affordability remained flat. According to CAR’s Traditional Housing Affordability Index (HAI), 34 percent of buyers could afford to purchase a median-priced, single-family home in California in the first quarter of this year, compared to 30 percent in the last quarter of 2015. On a more localized perspective, 22 out of 29 counties saw an improvement in housing affordability, three saw a decline and four remained the same. Some of the biggest changes were in the Bay Area, where eight out of nine counties became more affordable for buyers in the first quarter. Every county in Southern California, including Los Angeles, San Diego and Ventura counties, boosted in affordability. [graphiq id="2aIL3MaQURL" title="Ventura County, CA Profile" width="600" height="591...