C.A.R. Reports Entry-Level Housing Affordability Rises 18 Percentage Points in First...

C.A.R. Reports Entry-Level Housing Affordability Rises 18 Percentage Points in First Quarter

LOS ANGELES--(Business Wire)--
The percentage of households that could afford to buy an
entry-level home in California stood at 44 percent in the first
quarter of 2008, compared with 26 percent for the same period a year
ago, according to a report released today by the CALIFORNIA
ASSOCIATION OF REALTORS(R) (C.A.R.).

C.A.R.'s First-time Buyer Housing Affordability Index (FTB-HAI)
measures the percentage of households that can afford to purchase an
entry-level home in California. C.A.R. also reports first-time buyer
indexes for regions and select counties within the state. The Index is
the most fundamental measure of housing well-being for first-time
buyers in the state.

The minimum household income needed to purchase an entry-level
home at $356,350 in California in the first quarter of 2008 was
$67,830, based on an adjustable interest rate of 5.65 percent and
assuming a 10 percent down payment. First-time buyers typically
purchase a home equal to 85 percent of the prevailing median price.
The monthly payment including taxes and insurance was $2,260 for the
first quarter of 2008.

At $67,830, the minimum qualifying income was 30 percent lower
than a year earlier when households needed $96,500 to qualify for a
loan on an entry-level home. Recent decreases in home prices and
mortgage rates have brought affordability into better alignment with
income levels of the typical California household, where the median
household income was $50,700.

The First-time Buyer Housing Affordability Index rose 11
percentage points in the first quarter of this year compared to the
fourth quarter of 2007 due to a .56 point decrease in the mortgage
rate and a 14.3 percent decrease in the entry-level median home price.

At 64 percent, Sacramento County and the High Desert region were
the most affordable areas in the state. Monterey was the least
affordable area in the state at 29 percent, followed by the San
Francisco Bay Area at 30 percent.

Leading the way...(R) in real estate news and information for more
than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS(R)
(www.car.org) is one of the largest state trade organizations in the
United States, with nearly 175,000 members dedicated to the
advancement of professionalism in real estate. C.A.R. is headquartered
in Los Angeles.

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C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX(a)

C.A.R. Region Q1 Q4 Q1
2008 2007 2007
-------------------------------------------------- ----- ------ ------
California 44 33 26r
California - Condos 50 42 37r
United States 69 65 63
C.A.R. REGION
Central Valley NA NA 41
High Desert 64 54 44
Los Angeles County 35 27 21r
Monterey Region 29 21r 19
Northern California 48 42 37
Northern Wine Country 39 33 24
Orange County 36 28 25
Palm Sprgs/Lwr Desert 42 38 32
Riverside/SBernardino 57 46 37r
Sacramento County 64 53 43
San Diego County 41 31 23
San Francisco Bay 30 23 24
San Luis Obispo County 32 28 21
Santa Barbara Area 33 21 12
Santa Clara County 31 24 27
Southern California 43 32r 25
Ventura County 43 31r 26
-------------------------------------------------- ----- ------ ------
COUNTY
Alameda 34 27 25
Contra Costa 31 22 19
Fresno 56 47 44
Marin 24 22 21
Merced 61 51 46
Riverside 55 42 35
San Bernardino 59 46 41r
San Francisco 23 20 18
San Joaquin NA NA 38
San Mateo 22 19 19
Santa Cruz 28 22 20
Sonoma 41 36 26
Stanislaus NA NA 40

(a) -- percentage of California households that can afford to purchase
a median-priced home

r - revised

Source: CALIFORNIA ASSOCIATION OF REALTORS(R)
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Monthly
1Q Housing Entry- Payment Minimum
Affordability Level Including Qualifying
Index Price Taxes & Income
Insurance
------------------------ -------------- -------- ---------- ----------
California 44 $356,350 $2,260 $67,830
California - Condos 50 $311,260 $1,970 $59,250
United States 69 $166,860 $1,060 $31,760
C.A.R. REGION
Central Valley NA NA NA NA
High Desert 64 $187,130 $1,190 $35,620
Los Angeles County 35 $390,450 $2,480 $74,320
Monterey Region 29 $495,830 $3,150 $94,380
Northern California 48 $296,580 $1,880 $56,460
Northern Wine Country 39 $396,020 $2,510 $75,380
Orange County 36 $508,200 $3,220 $96,740
Palm Sprgs/Lwr Desert 42 $273,710 $1,740 $52,100
Riverside/SBernardino 57 $244,040 $1,550 $46,450
Sacramento County 64 $219,680 $1,390 $41,820
San Diego County 41 $390,120 $2,480 $74,260
San Francisco Bay 30 $596,450 $3,780 $113,540
San Luis Obispo County 32 $408,540 $2,590 $77,770
Santa Barbara Area 33 $434,660 $2,760 $82,740
Santa Clara County 31 $663,000 $4,210 $126,200
Southern California 43 $358,100 $2,270 $68,170
Ventura County 43 $453,890 $2,880 $86,400
------------------------ -------------- -------- ---------- ----------
COUNTY
Alameda 34 $497,850 $3,160 $94,770
Contra Costa 31 $598,150 $3,800 $113,860
Fresno 56 $202,760 $1,290 $38,600
Marin 24 $827,360 $5,250 $157,490
Merced 61 $177,360 $1,130 $33,760
Riverside 55 $254,940 $1,620 $48,530
San Bernardino 59 $228,050 $1,450 $43,410
San Francisco 23 $688,270 $4,370 $131,020
San Joaquin NA NA NA NA
San Mateo 22 $765,000 $4,850 $145,620
Santa Cruz 28 $548,780 $3,480 $104,460
Sonoma 41 $395,040 $2,510 $75,200
Stanislaus NA NA NA NA

Source: CALIFORNIA ASSOCIATION OF REALTORS(R)
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CALIFORNIA ASSOCIATION OF REALTORS(R)
Mark Giberson, 213-739-8304
markg@car.org

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