Le Lézard
Classified in: Business
Subjects: ECO, STP

Cheaper mortgages and income growth improve housing affordability in third quarter, C.A.R. reports


LOS ANGELES, Nov. 7, 2019 /PRNewswire/ -- A lower cost of borrowing and higher income levels allowed more Californians to afford a home purchase during the third quarter of 2019, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

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

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2019 edged up to 31 percent from 30 percent in the second quarter of 2019 and up from 27 percent in the third 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 third 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 $120,400 was needed to qualify for the purchase of a $613,470 statewide median-priced, existing single-family home in the third quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,010, assuming a 20 percent down payment and an effective composite interest rate of 3.85 percent, the lowest rate since third-quarter 2016. The effective composite interest rate was 4.17 percent in second-quarter 2019 and 4.77 percent a year ago.

Housing affordability for condominiums and townhomes also improved in the third quarter compared to the previous quarter, with 43 percent of California households earning the minimum income to qualify for the purchase of a $465,000 median-priced condominium/townhome, up from 40 percent in the previous quarter. An annual income of $91,200 was required to make monthly payments of $2,280. 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 (56 percent) could afford to purchase a $280,020 median-priced home, which required a minimum annual income of $54,800 to make monthly payments of $1,370.

Key points from the third-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
Third quarter 2019

STATE/REGION/COUNTY

3rd Qtr.
2019

2nd Qtr.
2019


3rd Qtr.
2018


Median
Home Price

Monthly
Payment
Including
Taxes &
Insurance

Minimum
Qualifying
Income

Calif. Single-family home

31

30


27


$613,470

$3,010

$120,400

Calif. Condo/Townhome

43

40


36


$465,000

$2,280

$91,200

Los Angeles Metro Area

33

32


30


$547,250

$2,680

$107,200

Inland Empire

44

42


41


$380,000

$1,860

$74,400

San Francisco Bay Area

29

24


21


$910,000

$4,460

$178,400

United States

56

55


53


$280,200

$1,370

$54,800










San Francisco Bay Area









Alameda

26

23


18


$920,000

$4,510

$180,400

Contra Costa

39

35


32


$665,000

$3,260

$130,400

Marin

22

21


19


$1,275,000

$6,250

$250,000

Napa

29

28


24


$725,250

$3,550

$142,000

San Francisco

18

17


15


$1,580,000

$7,740

$309,600

San Mateo

20

18


14


$1,510,000

$7,400

$296,000

Santa Clara

22

20


17


$1,240,000

$6,080

$243,200

Solano

47

46


38


$460,000

$2,250

$90,000

Sonoma

28

28


22


$673,250

$3,300

$132,000

Southern California









Los Angeles

25

29


22


$649,570

$3,180

$127,200

Orange

25

24


20


$826,000

$4,050

$162,000

Riverside

41

39


37


$420,000

$2,060

$82,400

San Bernardino

51

50


48


$315,000

$1,540

$61,600

San Diego

29

27


23


$645,000

$3,160

$126,400

Ventura

30

30


28


$667,500

$3,270

$130,800

Central Coast









Monterey

24

24


20


$649,000

$3,180

$127,200

San Luis Obispo

27

25


21


$635,000

$3,110

$124,400

Santa Barbara

22

20


26


$710,000

$3,480

$139,200

Santa Cruz

22

17


12


$855,000

$4,190

$167,600

Central Valley









Fresno

49

48


46


$285,500

$1,400

$56,000

Kern

51

50


53


$260,000

$1,270

$50,800

Kings

55

55


51


$257,000

$1,260

$50,400

Madera

52

51


48


$282,880

$1,390

$55,600

Merced

49

47


40


$279,000

$1,370

$54,800

Placer

48

45


42


$499,000

$2,450

$98,000

Sacramento

45

44


42


$388,000

$1,900

$76,000

San Benito

35

35


27


$589,500

$2,890

$115,600

San Joaquin

44

44


38


$385,000

$1,890

$75,600

Stanislaus

48

48


45


$335,000

$1,640

$65,600

Tulare

51

50


47


$250,000

$1,230

$49,200

Other Calif. Counties








Amador

49

46

r

NA


$320,000

$1,570

$62,800

Butte

38

35


39


$360,000

$1,760

$70,400

Calaveras

49

46


43


$330,000

$1,620

$64,800

El Dorado

42

40


41


$509,600

$2,500

$100,000

Humboldt

37

37


33


$330,250

$1,620

$64,800

Lake

47

44


39


$259,500

$1,270

$50,800

Lassen

64

63


67


$204,000

$1,000

$40,000

Mariposa

44

45


40


$316,500

$1,550

$62,000

Mendocino

30

29


23


$405,000

$1,980

$79,200

Mono

17

15


11


$697,500

$3,420

$136,800

Nevada

41

40


32


$417,500

$2,050

$82,000

Plumas

46

37


44


$316,500

$1,550

$62,000

Shasta

47

47


44


$285,000

$1,400

$56,000

Siskiyou

51

49


47


$225,000

$1,100

$44,000

Sutter

47

46


45


$315,000

$1,540

$61,600

Tehama

46

47


49


$255,500

$1,250

$50,000

Tuolumne

49

48


41


$300,000

$1,470

$58,800

Yolo

39

40


35


$469,000

$2,300

$92,000

Yuba

48

46


48


$299,950

$1,470

$58,800

R = revised
NA = not available

 

SOURCE CALIFORNIA ASSOCIATION OF REALTORS


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