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Subjects: ECO, STP

Strong wage growth and steady home prices buoy California housing affordability, C.A.R. reports


LOS ANGELES, May 15, 2018 /PRNewswire-USNewswire/ -- Higher wages and lower seasonal home prices combined to push California's housing affordability higher in the first quarter of 2018, compared to the previous quarter, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

CALIFORNIA ASSOCIATION OF REALTORS (PRNewsFoto/C.A.R.)

The percentage of homebuyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2018 edged up to 31 percent from 29 percent in the fourth quarter of 2017 but was down from 32 percent in the first quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). This is the 20th consecutive quarter that the index has been below 40 percent. California's housing affordability index hit a peak of 56 percent in the first 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 homebuyers in the state.

A minimum annual income of $111,500 was needed to qualify for the purchase of a $538,640 statewide median-priced, existing single-family home in the first quarter of 2018. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,790, assuming a 20 percent down payment and an effective composite interest rate of 4.44 percent. The effective composite interest rate in fourth-quarter 2017 was 4.17 percent and 4.36 percent in the first quarter of 2017. 

Condominiums and townhomes also were more affordable in first-quarter 2018 compared to the previous quarter with 39 percent of California households earning the minimum income to qualify for the purchase of a $449,720 median-priced condominium/townhome, up from 38 percent in the fourth quarter. An annual income of $93,090 was required to make monthly payments of $2,330.

Key points from the first-quarter 2018 Housing Affordability report include:

Housing Affordability slides (click link to open)

Affordability peak versus current
Annual required income peak vs. current
Monthly PITI peak versus current 
Affordability by region peak versus current 
Housing affordability by county

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 than190,000 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
First Quarter 2018

C.A.R. Region

Housing
Affordability
Index

Median Home
Price

Monthly
Payment
Including Taxes
& Insurance

Minimum
Qualifying Income

Calif. Single-family home

31

$           538,640

$               2,790

$           111,500

Calif. Condo/Townhome

39

$           449,720

$               2,330

$             93,090

Los Angeles Metropolitan Area

32

$           500,000

$               2,590

$           103,500

Inland Empire

43

$           350,000

$               1,810

$             72,450

San Francisco Bay Area

23

$           900,000

$               4,660

$           186,300

United States

57

$           245,500

$               1,270

$             50,820






San Francisco Bay Area





Alameda

22

$           875,000

$               4,530

$           181,130

Contra-Costa (Central County)

36

$           615,000

$               3,180

$           127,310

Marin

18

$        1,360,000

$               7,040

$           281,520

Napa

28

$           679,000

$               3,510

$           140,550

San Francisco

15

$        1,610,000

$               8,330

$           333,270

San Mateo

15

$        1,575,050

$               8,150

$           326,040

Santa Clara

17

$        1,373,000

$               7,110

$           284,210

Solano

42

$           430,000

$               2,230

$             89,010

Sonoma

21

$           681,000

$               3,520

$           140,970

Southern California





Los Angeles

28

$           545,540

$               2,820

$           112,930

Orange County

21

$           810,000

$               4,190

$           167,670

Riverside County

39

$           397,000

$               2,050

$             82,180

San Bernardino

52

$           278,500

$               1,440

$             57,650

San Diego

26

$           610,000

$               3,160

$           126,270

Ventura

31

$           635,500

$               3,290

$           131,550

Central Coast





Monterey

23

$           590,000

$               3,050

$           122,130

San Luis Obispo

25

$           596,400

$               3,090

$           123,460

Santa Barbara

22

$           675,000

$               3,490

$           139,730

Santa Cruz

15

$           850,000

$               4,400

$           175,950

Central Valley





Fresno

49

$           258,000

$               1,340

$             53,410

Kern (Bakersfield)

56

$           231,500

$               1,200

$             47,920

Kings County

52

$           232,000

$               1,200

$             48,020

Madera

50

$           255,000

$               1,320

$             52,790

Merced

43

$           262,500

$               1,360

$             54,340

Placer County

44

$           465,000

$               2,410

$             96,260

Sacramento

44

$           355,000

$               1,840

$             73,490

San Benito

32

$           560,000

$               2,900

$           115,920

San Joaquin

40

$           362,500

$               1,880

$             75,040

Stanislaus

48

$           300,000

$               1,550

$             62,100

Tulare

50

$           225,000

$               1,160

$             46,580

Other Calif. Counties





Amador

45

$           330,750

$               1,710

$             68,470

Butte

41

$           307,000

$               1,590

$             63,550

Calaveras

46

$           315,000

$               1,630

$             65,210

El Dorado

42

$           489,000

$               2,530

$           101,220

Humboldt

36

$           300,050

$               1,550

$             62,110

Lake County

40

$           266,450

$               1,380

$             55,160

Lassen

68

$           171,000

$                   880

$             35,400

Mariposa

44

$           292,500

$               1,510

$             60,550

Mendocino

25

$           412,500

$               2,130

$             85,390

Mono

8

$           780,000

$               4,040

$           161,460

Nevada

37

$           400,000

$               2,070

$             82,800

Plumas

NA

 $                    NA

 $                   NA

 $                   NA

Shasta

49

$           249,900

$               1,290

$             51,730

Siskiyou

48

$           210,000

$               1,090

$             43,470

Sutter

49

$           282,700

$               1,460

$             58,520

Tehama

51

$           219,000

$               1,130

$             45,330

Tuolumne

49

$           280,000

$               1,450

$             57,960

Yolo

41

$           400,000

$               2,070

$             82,800

Yuba

49

$           269,950

$               1,400

$             55,880


NA = Not available

 

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
First Quarter 2018

STATE/REGION/COUNTY

Q1 2018

Q4 2017


Q1 2017


Calif. Single-family home

31

29


32


Calif. Condo/Townhome

39

38

r

40


Los Angeles Metropolitan Area

32

31


33


Inland Empire

43

43


44

r

San Francisco Bay Area

23

21


25


United States

57

56


57








San Francisco Bay Area






Alameda

22

20


21


Contra-Costa (Central County)

36

34


37


Marin

18

18


18


Napa

28

25


24


San Francisco

15

12


13


San Mateo

15

14


15


Santa Clara

17

15


19


Solano

42

44


45


Sonoma

21

23


25


Southern California






Los Angeles

28

25


29


Orange County

21

21


21


Riverside County

39

38


39


San Bernardino

52

50


52


San Diego

26

26


28


Ventura

31

26


28

r

Central Coast






Monterey

23

21


23


San Luis Obispo

25

24


26


Santa Barbara

22

18


14


Santa Cruz

15

17


17


Central Valley






Fresno

49

46


48


Kern (Bakersfield)

56

54


55


Kings County

52

52


53


Madera

50

49

r

47


Merced

43

48


50


Placer County

44

44


45


Sacramento

44

43


46


San Benito

32

31


32


San Joaquin

40

41


45


Stanislaus

48

45


48


Tulare

50

52


52


Other Counties in California






Amador

45

44


47


Butte

41

39


41


Calaveras

46

50


NA


El Dorado

42

42


43


Humboldt

36

34


36


Lake County

40

36


43


Lassen

68

65


NA


Mariposa

44

48


46

r

Mendocino

25

28


26


Mono

8

19


NA


Nevada

37

39


NA


Plumas

NA

45


NA


Shasta

49

47


49


Siskiyou

48

51


48


Sutter

49

52


53


Tehama

51

56


55


Tuolumne

49

48


46

r

Yolo

41

34


37


Yuba

49

42


44



r = revised

NA = Not available

 

SOURCE CALIFORNIA ASSOCIATION OF REALTORS


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