California housing affordability dips in second quarter 2019, C.A.R. reports – iCrowdNewswire
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Aug 8, 2019 6:10 AM ET

California housing affordability dips in second quarter 2019, C.A.R. reports


iCrowd Newswire - Aug 8, 2019

– Thirty percent of California households could afford to purchase the $608,660 median-priced home in the second quarter of 2019, down from 32 percent in first-quarter 2019 but up from 26 percent a year ago.

– A minimum annual income of $122,960 was needed to make monthly payments of $3,070, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.17 percent interest rate.

– Forty percent of home buyers were able to purchase the $475,000 median-priced condo or townhome. An annual income of $95,960 was required to make a monthly payment of $2,400.

LOS ANGELES, – Higher home prices negated the lowest interest rates in more than a year and reduced Californians’ ability to afford a home purchase in the second quarter of 2019, the CALIFORNIAASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in Californiain second-quarter 2019 dipped to 30 percent from 32 percent in the first quarter of 2019 but was up from 26 percent in the second quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI). California’s housing affordability index hit a peak of 56 percent in the second quarter of 2012.

C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $122,960 was needed to qualify for the purchase of a $608,660 statewide median-priced, existing single-family home in the second quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,070, assuming a 20 percent down payment and an effective composite interest rate of 4.17 percent. The effective composite interest rate was 4.62 percent in first-quarter 2019 and 4.70 percent in second-quarter 2018. 

Housing affordability for condominiums and townhomes also slipped in first-quarter 2019 compared to the previous quarter, with 40 percent of California households earning the minimum income to qualify for the purchase of a $475,000 median-priced condominium/townhome, down from 41 percent in the previous quarter. An annual income of $95,960 was required to make monthly payments of $2,400. Thirty-six percent of households could afford to buy a condominium/townhome a year ago.

Compared with California, more than half of the nation’s households (55 percent) could afford to purchase a $279,600median-priced home, which required a minimum annual income of $56,480 to make monthly payments of $1,410.

Key points from the second-quarter 2019 Housing Affordability report include:

See C.A.R.’s historical housing affordability data.
See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS®

Traditional Housing Affordability Index

Second quarter 2019

 

STATE/REGION/COUNTY

2nd Qtr.

2019

1st Qtr.

2019

 

2nd Qtr.

2018

 

Median

Home

Price

Monthly

Payment

Including

Taxes &

Insurance

Minimum

Qualifying

Income

Calif. Single-family home

30

32

 

26

 

$608,660

$3,070

$122,960

Calif. Condo/Townhome

40

41

 

36

 

$475,000

$2,400

$95,960

Los Angeles Metro Area

32

33

 

29

 

$540,000

$2,730

$109,090

Inland Empire

42

42

 

41

 

$380,000

$1,920

$76,760

San Francisco Bay Area

24

26

 

18

 

$980,000

$4,950

$197,970

United States

55

57

 

53

 

$279,600

$1,410

$56,480

                 

San Francisco Bay Area

               

Alameda

23

25

 

16

 

$950,000

$4,800

$191,910

Contra Costa

35

37

 

29

 

$690,000

$3,480

$139,390

Marin

21

21

 

18

 

$1,381,250

$6,980

$279,030

Napa

28

29

 

25

 

$710,000

$3,590

$143,430

San Francisco

17

17

 

14

 

$1,700,000

$8,580

$343,420

San Mateo

18

18

 

14

 

$1,677,500

$8,470

$338,870

Santa Clara

20

20

 

16

 

$1,330,000

$6,720

$268,680

Solano

46

46

 

38

 

$445,000

$2,250

$89,900

Sonoma

28

27

 

20

 

$660,000

$3,330

$133,330

Southern California

               

Los Angeles

29

28

 

26

 

$567,010

$2,860

$114,540

Orange

24

24

 

20

 

$835,000

$4,220

$168,680

Riverside

39

39

 

37

 

$420,000

$2,120

$84,840

San Bernardino

50

50

 

49

 

$310,000

$1,570

$62,620

San Diego

27

27

 

23

 

$655,000

$3,310

$132,320

Ventura

30

29

 

28

 

$650,000

$3,280

$131,300

Central Coast

               

Monterey

24

25

 

19

 

$630,000

$3,180

$127,270

San Luis Obispo

25

26

 

22

 

$640,000

$3,230

$129,290

Santa Barbara

20

25

 

20

 

$724,500

$3,660

$146,360

Santa Cruz

17

17

 

12

 

$937,500

$4,740

$189,390

Central Valley

               

Fresno

48

48

 

46

 

$279,920

$1,410

$56,550

Kern

50

50

 

53

 

$255,000

$1,290

$51,510

Kings

55

57

 

50

 

$250,000

$1,260

$50,500

Madera

51

52

 

48

 

$277,000

$1,400

$55,960

Merced

47

46

 

42

 

$282,000

$1,420

$56,970

Placer

45

46

 

41

 

$514,950

$2,600

$104,030

Sacramento

44

44

 

41

 

$385,000

$1,940

$77,770

San Benito

35

31

 

30

 

$571,500

$2,880

$115,330

San Joaquin

44

43

 

38

 

$380,000

$1,920

$76,760

Stanislaus

48

47

 

45

 

$325,250

$1,640

$65,700

Tulare

50

51

 

48

 

$247,500

$1,250

$50,000

Other Calif. Counties

             

Amador

NA

NA

 

44

 

NA

NA

NA

Butte

35

34

 

38

 

$370,000

$1,870

$74,740

Calaveras

46

47

 

43

 

$343,000

$1,730

$69,290

El Dorado

40

40

 

38

 

$519,500

$2,620

$104,940

Humboldt

37

36

 

33

 

$320,000

$1,610

$64,570

Lake

44

44

 

37

 

$267,000

$1,350

$53,820

Lassen

63

63

 

64

 

$204,000

$1,030

$41,080

Mariposa

45

41

 

39

 

$300,000

$1,510

$60,350

Mendocino

29

28

 

22

 

$400,000

$2,010

$80,380

Mono

15

10

 

14

 

$699,500

$3,510

$140,410

Nevada

40

40

 

32

 

$419,000

$2,100

$84,020

Plumas

37

48

 

42

 

$367,390

$1,840

$73,600

Shasta

47

44

 

46

 

$281,000

$1,410

$56,230

Siskiyou

49

53

 

48

 

$232,500

$1,160

$46,480

Sutter

46

46

 

45

 

$312,500

$1,560

$62,400

Tehama

47

43

 

51

 

$244,000

$1,220

$48,680

Tuolumne

48

45

 

43

 

$300,000

$1,490

$59,790

Yolo

40

39

 

33

 

$455,000

$2,260

$90,590

Yuba

46

46

 

45

 

$305,000

$1,520

$60,660

 

NA = not available



Contact Information:

CALIFORNIA ASSOCIATION OF REALTORS








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