LOS ANGELES (May 17) The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the first quarter of 2007, compared with 26 percent 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 $480,670 in California in the first quarter of 2007 was $96,910, based on an adjustable interest rate of 6.3 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 $3,230 for the first quarter of 2007.
At 44 percent, the High Desert region was the most affordable in the state, followed by the Sacramento region at 43 percent. Santa Barbara was the least affordable region in the state at 12 percent, followed by the Monterey region at 19 percent.
Quarterly FTB-HAI historical data from 2003 – 2007 is available on C.A.R. Online at http://www.car.org/index.php?id=MzY0ODU.
Leading the way...® in real estate news and information 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 nearly 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
C.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX *
| Q1 2007 | Q4 2006 |
| Q1 2006 |
|
California | 25 | 25 |
| 26 |
|
California - Condos | 38 | 37 |
| 36 |
|
United States | 64 | 62 | r | 63 | r |
C.A.R. REGION |
|
|
|
|
|
Central Valley | 41 | 39 | r | 38 | r |
High Desert | 44 | 41 |
| 41 |
|
Los Angeles County | 20 | 19 |
| 21 |
|
Monterey Region | 19 | 19 | r | 19 |
|
Northern California | 37 | 37 |
| 32 |
|
Northern Wine Country | 24 | 24 |
| 22 | r |
Orange County Home Value | 25 | 24 |
| 23 |
|
Palm Sprgs/Lwr Desert | 32 | 33 | r | 30 |
|
Riverside/SBernardino | 36 | 34 | r | 35 | r |
Sacramento County | 43 | 41 |
| 40 | r |
San Diego County | 23 | 23 |
| 22 | r |
San Francisco Bay | 24 | 25 | r | 25 | r |
San Luis Obispo County | 21 | 22 |
| 18 |
|
Santa Barbara Area | 12 | 19 |
| 13 | r |
Santa Clara County | 27 | 29 | r | 29 | r |
Southern California | 25 | 25 | r | 26 | r |
Ventura County | 26 | 26 | r | 25 | r |
COUNTY |
|
|
|
|
|
Alameda | 25 | 25 | r | 25 | r |
Contra Costa | 19 | 26 |
| 21 | r |
Fresno | 44 | 42 | r | 41 | r |
Marin | 21 | 22 | r | 21 | r |
Merced | 46 | 41 | r | 37 | r |
Riverside | 35 | 34 | r | 33 | r |
San Bernardino | 39 | 36 |
| 39 |
|
San Francisco | 18 | 19 |
| 20 | r |
San Joaquin | 38 | 34 | r | 34 | r |
San Mateo | 19 | 20 | r | 20 | r |
Santa Cruz | 20 | 21 | r | 21 |
|
Sonoma | 26 | 25 | r | 24 |
|
Stanislaus | 40 | 37 | r | 37 | r |
* -- percentage of California households that can afford to purchase a median-priced home
Source: CALIFORNIA ASSOCIATION OF REALTORS®
| Housing | First-Time Buyer | Monthly Payment Including Taxes & Insurance | Minimum |
California | 25 | $480,670 | $3,230 | $96,910 |
California - Condos | 38 | $363,210 | $2,440 | $73,230 |
United States | 64 | $180,460 | $1,210 | $36,380 |
C.A.R. REGION |
|
|
|
|
Central Valley | 41 | $284,800 | $1,910 | $57,420 |
High Desert | 44 | $271,430 | $1,820 | $54,730 |
Los Angeles County | 20 | $501,390 | $3,370 | $101,090 |
Monterey Region | 19 | $604,970 | $4,070 | $121,980 |
Northern California | 37 | $332,140 | $2,230 | $66,970 |
Northern Wine Country | 24 | $504,950 | $3,390 | $101,810 |
Orange County | 25 | $592,660 | $3,980 | $119,490 |
Palm Sprgs/Lwr Desert | 32 | $320,120 | $2,150 | $64,540 |
Riverside/SBernardino | 36 | $343,770 | $2,310 | $69,310 |
Sacramento County | 43 | $310,670 | $2,090 | $62,640 |
San Diego County value | 23 | $505,890 | $3,400 | $102,000 |
San Francisco Bay | 24 | $635,910 | $4,270 | $128,210 |
San Luis Obispo County | 21 | $480,280 | $3,230 | $96,830 |
Santa Barbara Area | 12 | $702,580 | $4,720 | $141,660 |
Santa Clara County | 27 | $669,800 | $4,500 | $135,050 |
Southern California | 25 | $474,960 | $3,190 | $95,760 |
Ventura County | 26 | $571,860 | $3,840 | $115,300 |
COUNTY |
|
|
|
|
Alameda | 25 | $569,230 | $3,830 | $114,770 |
Contra Costa | 19 | $700,690 | $4,710 | $141,270 |
Fresno | 44 | $242,290 | $1,630 | $48,850 |
Marin | 21 | $839,010 | $5,640 | $169,160 |
Merced | 46 | $235,220 | $1,580 | $47,420 |
Riverside | 35 | $354,340 | $2,380 | $71,440 |
San Bernardino | 39 | $315,960 | $2,120 | $63,710 |
San Francisco | 18 | $704,230 | $4,730 | $141,990 |
San Joaquin | 38 | $323,530 | $2,170 | $65,230 |
San Mateo | 19 | $748,000 | $5,030 | $150,810 |
Santa Cruz | 20 | $626,450 | $4,210 | $126,310 |
Sonoma | 26 | $500,400 | $3,360 | $100,890 |
Stanislaus | 40 | $298,030 | $2,000 | $60,090 |
Source: CALIFORNIA ASSOCIATION OF REALTORS®
