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California housing affordability climbs in first quarter 2019, C.A.R. reports

Thursday, May 16, 2019   (0 Comments)
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California housing affordability climbs in first quarter 2019, C.A.R. reports

 

·        Thirty-two percent of California households could afford to purchase the $545,820 median-priced home in the first quarter of 2019, up from 28 percent in fourth-quarter 2018 and up from 31 percent a year ago.

·        A minimum annual income of $114,860 was needed to make monthly payments of $2,870, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.62 percent interest rate.

·        Forty-one percent of home buyers were able to purchase the $450,000 median-priced condo or townhome. An annual income of $94,690 was required to make a monthly payment of $2,370.

 

LOS ANGELES (May 14) – More Californians could afford to purchase a home in the first quarter of 2019 as lower mortgage interest rates and cooler seasonal home prices combined with higher income levels to improve California housing affordability, the CALIFORNIA ASSOCIATION 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 California in first-quarter 2019 rose to 32 percent from 28 percent in the fourth quarter of 2018 and from 31 percent in the first quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The index climbed above 30 percent for the first time in a year. 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 home buyers in the state.

 

A minimum annual income of $114,860 was needed to qualify for the purchase of a $545,820 statewide median-priced, existing single-family home in the first quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,870, assuming a 20 percent down payment and an effective composite interest rate of 4.62 percent. The effective composite interest rate was 4.95 percent in fourth-quarter 2018 and 4.44 percent in first-quarter 2018. 

 

Housing affordability for condominiums and townhomes also improved in first-quarter 2019 compared to the previous quarter, with 41 percent of California households earning the minimum income to qualify for the purchase of a $450,000 median-priced condominium/townhome, up from 37 percent in the previous quarter. An annual income of $94,690 was required to make monthly payments of $2,370. Thirty-nine percent of households could afford to buy a condominium/townhome a year ago.

 

Compared with California, more than half of the nation’s households (57 percent) could afford to purchase a $254,800 median-priced home, which required a minimum annual income of $53,620 to make monthly payments of $1,340.

 

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

  • Housing affordability improved from first-quarter 2018 in 28 tracked counties and declined in 16 counties. Affordability in four counties remained flat.
  • In the San Francisco Bay Area, affordability improved from a year ago in every county. San Francisco County was the least affordable, with just 17 percent of households able to purchase the $1,532,500 median-priced home. Forty-six percent of Solano County households could afford the $430,500 median-priced home, making it the most affordable Bay Area county.
  • Affordability results in the Southern California region were mixed as only Orange and San Diego counties recorded an improvement from a year ago, while San Bernardino and Ventura counties experienced a decline. Affordability was unchanged in Los Angeles and Riverside counties.
  • In the Central Valley region, affordability held even from a year ago only in two counties — Fresno and Sacramento — and fell in three counties — Kern, San Benito and Stanislaus. Kings, Madera, Merced, Placer, San Joaquin and Tulare counties recorded improvements.
  • Housing affordability improved in all four counties in the Central Coast region, which includes Monterey, San Luis Obispo, Santa Barbara and Santa Cruz counties.
  • During the first quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (57 percent) and Siskiyou (53 percent). The minimum annual income needed to qualify for a home in these counties was $47,340 or less.
  • Mono (10 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) counties were the least affordable areas in the state. San Francisco and San Mateo counties required the highest minimum qualifying incomes in the state. An annual income of $322,480 was needed to purchase a home in San Francisco County, and an annual income of $323,010 was required in San Mateo 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 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
First quarter 2019

STATE/REGION/COUNTY

1st Qtr. 2019

4th Qtr. 2018

 

1st Qtr. 2018

Median Home Price

Monthly Payment Including Taxes & Insurance

Minimum Qualifying Income

Calif. Single-family home

32

28

 

31

 

$545,820

$2,870

$114,860

Calif. Condo/Townhome

41

37

 

39

 

$450,000

$2,370

$94,690

Los Angeles Metro Area

33

30

 

32

 

$509,000

$2,680

$107,110

Inland Empire

42

40

 

43

 

$365,000

$1,920

$76,810

San Francisco Bay Area

26

22

 

23

 

$885,000

$4,660

$186,230

United States

57

54

 

57

 

$254,800

$1,340

$53,620

 

 

 

 

 

 

 

 

 

San Francisco Bay Area

 

 

 

 

 

 

 

 

Alameda

25

20

 

22

 

$865,000

$4,550

$182,020

Contra Costa

37

33

 

36

 

$630,000

$3,310

$132,570

Marin

21

19

 

18

 

$1,250,000

$6,580

$263,040

Napa

29

25

 

28

 

$672,500

$3,540

$141,510

San Francisco

17

15

 

15

 

$1,532,500

$8,060

$322,480

San Mateo

18

15

 

15

 

$1,535,000

$8,080

$323,010

Santa Clara

20

18

 

17

 

$1,220,000

$6,420

$256,720

Solano

46

39

 

42

 

$430,500

$2,260

$90,590

Sonoma

27

23

 

21

 

$632,500

$3,330

$133,100

Southern California

 

 

 

 

 

 

 

 

Los Angeles

28

24

 

28

 

$548,630

$2,890

$115,450

Orange

24

20

 

21

 

$800,000

$4,210

$168,340

Riverside

39

37

 

39

 

$409,000

$2,150

$86,070

San Bernardino

50

48

 

52

 

$299,950

$1,580

$63,120

San Diego

27

24

 

26

 

$620,000

$3,260

$130,470

Ventura

29

29

 

31

 

$630,240

$3,320

$132,620

Central Coast

 

 

 

 

 

 

 

 

Monterey

25

21

 

23

 

$585,000

$3,080

$123,100

San Luis Obispo

26

22

 

25

 

$602,000

$3,170

$126,680

Santa Barbara

25

26

R

22

 

$596,000

$3,140

$125,420

Santa Cruz

17

12

 

15

 

$902,500

$4,750

$189,910

Central Valley

 

 

 

 

 

 

 

 

Fresno

48

46

 

48

R

$272,500

$1,430

$57,340

Kern

50

53

 

56

 

$245,000

$1,290

$51,560

Kings

57

50

 

52

 

$224,950

$1,180

$47,340

Madera

52

47

 

49

R

$260,000

$1,370

$54,710

Merced

46

40

 

43

 

$275,000

$1,450

$57,870

Placer

46

42

 

44

 

$480,670

$2,530

$101,150

Sacramento

44

42

 

44

 

$360,000

$1,890

$75,750

San Benito

31

28

 

32

 

$610,000

$3,210

$128,360

San Joaquin

43

38

 

40

 

$365,000

$1,920

$76,810

Stanislaus

47

45

 

48

 

$314,000

$1,650

$66,070

Tulare

51

47

 

50

 

$232,000

$1,220

$48,820

Other Calif. Counties

 

 

 

 

 

 

 

 

Amador

NA

NA

 

45

 

NA

NA

NA

Butte

34

34

 

41

 

$361,100

$1,900

$75,990

Calaveras

47

45

 

46

 

$320,000

$1,680

$67,340

El Dorado

40

42

 

42

 

$489,000

$2,570

$102,900

Humboldt

36

33

 

36

 

$312,500

$1,640

$65,760

Lake

44

40

 

40

 

$255,000

$1,340

$53,660

Lassen

63

66

 

68

 

$197,000

$1,040

$41,450

Mariposa

41

38

 

44

 

$310,000

$1,630

$65,230

Mendocino

28

23

 

25

 

$385,500

$2,030

$81,120

Mono

10

12

 

8

 

$775,000

$4,080

$163,080

Nevada

40

35

 

37

 

$402,500

$2,120

$84,700

Plumas

48

42

 

47

 

$280,000

$1,470

$58,920

Shasta

44

45

 

49

 

$284,000

$1,490

$59,760

Siskiyou

53

50

 

48

 

$199,500

$1,050

$41,980

Sutter

46

44

 

49

 

$295,000

$1,550

$62,080

Tehama

43

46

 

51

 

$257,500

$1,350

$54,190

Tuolumne

45

48

 

49

 

$304,500

$1,600

$64,080

Yolo

39

37

 

41

 

$432,500

$2,280

$91,010

Yuba

46

44

 

49

 

$289,000

$1,520

$60,810

R = revised
NA = not available


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