C.A.R. Reports Entry-Level Housing Affordability at 24 Percent in California
LOS ANGELES--(Business Wire)--The percentage of households that could afford to buy anentry-level home in California stood at 24 percent in the thirdquarter of 2007, unchanged from the same period a year ago, accordingto a report released today by the CALIFORNIA ASSOCIATION OFREALTORS(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 anentry-level home in California. C.A.R. also reports first-time buyerindexes for regions and select counties within the state. The Index isthe most fundamental measure of housing well-being for first-timebuyers in the state. The minimum household income needed to purchase an entry-levelhome at $482,910 in California in the third quarter of 2007 was$99,590, based on an adjustable interest rate of 6.56 percent andassuming a 10 percent down payment. First-time buyers typicallypurchase a home equal to 85 percent of the prevailing median price.The monthly payment including taxes and insurance was $3,320 for thethird quarter of 2007. At 48 percent, the High Desert region was the most affordable inthe state, followed by the Sacramento region at 46 percent. SantaBarbara was the least affordable region in the state at 11 percent,followed by the Monterey region at 16 percent. Leading the way...(R) in real estate news and information for morethan 100 years, the CALIFORNIA ASSOCIATION OF REALTORS(R)
(www.car.org) is one of the largest state trade organizations in theUnited States, with nearly 200,000 members dedicated to theadvancement of professionalism in real estate. C.A.R. is headquarteredin Los Angeles.-0-*TC.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX (1)
Q3 2007 Q2 2007 Q3 2006R
--------------------------------------------------------------------------------------------------------------------------------------------California 24 24 24California - Condos 38 36 35United States 61 62 60 rC.A.R. REGIONCentral Valley NA 42 37 rHigh Desert 48 45 39Los Angeles County 20 20 19Monterey Region 16 17 17Northern California 38 37 34 rNorthern Wine Country 24 23 22Orange County 24 23 22Palm Sprgs/Lwr Desert 33 31 33 rRiverside/SBernardino 39 37 32 rSacramento County 46 44 39 rSan Diego County 24 23 21San Francisco Bay 18 18 22 rSan Luis Obispo County 20 19 18Santa Barbara Area 11 12 14Santa Clara County 21 21 26 rSouthern California 24 23 23Ventura County 25 25 22--------------------------------------------------------------------------------------------------------------------------------------------COUNTYAlameda 23 23 23 rContra Costa 16 16 17 rFresno 44 44 40 rMarin 20 19 21 rMerced 48 46 41 rRiverside 36 35 25 rSan Bernardino 44 40 28 rSan Francisco 15 15 17San Joaquin NA 39 32 rSan Mateo 17 18 20Santa Cruz 17 18 18Sonoma 25 24 23 rStanislaus NA 41 36 r(1)--percentage of California households that can afford to purchase a median-priced homer--revised*T-0-*T First- Monthly Housing Time Payment Minimum Affordability Buyer Including Qualifying Index Median Taxes Income Price & Q3 2007 Insurance--------------------------------------------------------------------------------------------------------------------------------------------California 24 $482,910 $3,320 $99,588California - Condos 38 $358,650 $2,465 $73,963United States 61 $187,680 $1,290 $38,704C.A.R. REGIONCentral Valley NAHigh Desert 48 $243,110 $1,671 $50,135Los Angeles County 20 $500,130 $3,438 $103,139Monterey Region 16 $646,410 $4,444 $133,306Northern California 38 $322,950 $2,220 $66,600Northern Wine Country 24 $503,160 $3,459 $103,764Orange County 24 $595,550 $4,094 $122,817Palm Sprgs/Lwr Desert 33 $314,820 $2,164 $64,924Riverside/SBernardino 39 $320,370 $2,202 $66,068Sacramento County 46 $285,340 $1,961 $58,844San Diego County 24 $500,910 $3,443 $103,300San Francisco Bay 18 $701,590 $4,823 $144,686San Luis Obispo County 20 $486,980 $3,348 $100,428Santa Barbara Area 11 $709,870 $4,880 $146,393Santa Clara County 21 $724,630 $4,981 $149,437Southern California 24 $477,790 $3,284 $98,532Ventura County 25 $575,960 $3,959 $118,777--------------------------------------------------------------------------------------------------------------------------------------------COUNTYAlameda 23 $594,350 $4,086 $122,570Contra Costa 16 $742,220 $5,102 $153,064Fresno 44 $235,360 $1,618 $48,537Marin 20 $864,990 $5,946 $178,383Merced 48 $219,940 $1,512 $45,357Riverside 36 $341,760 $2,349 $70,480San Bernardino 44 $278,970 $1,918 $57,531San Francisco 15 $744,180 $5,116 $153,469San Joaquin NA $0 $0 $0San Mateo 17 $816,000 $5,609 $168,280Santa Cruz 17 $656,200 $4,511 $135,325Sonoma 25 $504,460 $3,468 $104,032Stanislaus NA $0 $0 $0*TCALIFORNIA ASSOCIATION OF REALTORS(R)Mark Giberson, 213-739-8304markg@car.orgCopyright Business Wire 2007
