Housing affordability, an issue nationwide, got a little less onerous in California during the first quarter.
The percentage of home buyers who could afford to buy a median-priced, existing signle-family home rose to 34%, up from 31% in the fourth quarter, according to the California Association of Realtors’ Traditional Housing Affordability Index (HAI). The HAI measures the percentage of all California households that can afford to purchase a median-priced, single-family home.
This is the second consecutive quarter of improvement for housing affordability in the state, and the highest level of affordability since the second quarter of 2013, according to CAR. Housing affordability in California hit a peak of 56% in the first quarter of 2012, CAR reported.
According to CAR, home buyers wanting to purchase a home with the statewide median p-rice of $442,430 in the first quarter needed to earn an annual income of at least $87,700. The monthly payment, including taxes and insurance, on a 30-year fixed-rate mortgage would be $2,190, assuming a composite interest rate of 3.97% and a 20% down payment, CAR reported.
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Marin, San Luis Obispo and Monterey counties saw the biggest year-over-year improvements in affordability, due in large part to increasing household incomes and declining interest rates, according to CAR.
Contra Costa, Solano and San Joaquin counties posted the largest year-over-year declines in affordability as home prices there saw double-digit growth.
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