C.A.R. Reports Entry-Level Housing Affordability Reached 64 Percent in the Third Quarter of 2009

Quick Facts:

* C.A.R. First-time Buyer Housing Affordability Index stood at 64 percent in the
third quarter of 2009 compared with 55 percent (revised) in the third quarter of
2008
* The median price of an entry-level home in California was $247,150 in the
third quarter of 2009
* The estimated monthly payment including taxes and insurance was $1,450 in the
third quarter of 2009
* The minimum household income needed to purchase an entry-level home in
California in the third quarter of 2009 was $43,500

LOS ANGELES--(Business Wire)--
The percentage of households that could afford to buy an entry-level home in
California stood at 64 percent in the third quarter of 2009, compared with 55
percent (revised) for the same period a year ago, according to a report released
today by the CALIFORNIA ASSOCIATION OF REALTORS® (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 $247,150
in California in the third quarter of 2009 was $43,500, based on an adjustable
interest rate of 4.79 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 $1,450 for the
third quarter of 2009.

At $43,500, the minimum qualifying income was 19 percent lower than a year
earlier when households needed $53,700 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
households, where the median household income is $61,030.

The First-time Buyer Housing Affordability Index declined 3 percentage points in
the third quarter of this year compared with the second quarter of 2009, due to
a 10.2 percent increase in the price of an entry-level home.

At 85 percent, the High Desert region was the most affordable area in the state.
The San Luis Obispo County region was the least affordable in the state at 47
percent, followed by the San Francisco Bay region at 49 percent.

To view C.A.R.`s First-time Buyer Housing Affordability Index tables, please
visit: http://car.org/newsstand/newsreleases/q3ftbhai/.

Leading the way…® in California real estate for more than 100 years, the
CALIFORNIA ASSOCIATION OF REALTORS (www.car.org) is one of the largest state
trade organizations in the United States with more than 167,000 members
dedicated to the advancement of professionalism in real estate. C.A.R. is
headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS
Mark Giberson (213) 739-8304
E-mail: markg@car.org

Copyright Business Wire 2009