California Association of REALTORS First-time Homebuyer Housing Affordability Index
LOS ANGELES, CALIFORNIA - The percentage of households that could afford to buy an entry-level home in California stood at 24 percent in the third quarter of 2007, unchanged from the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time homebuyers in the state.
The minimum household income needed to purchase an entry-level home at $482,910 in California in the third quarter of 2007 was $99,590, based on an adjustable interest rate of 6.56 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price.
The monthly payment including taxes and insurance was $3,320 for the third quarter of 2007. At 48 percent, the High Desert region was the most affordable in the state, followed by the Sacramento region at 46 percent. Santa Barbara was the least affordable region in the state at 11 percent,followed by the Monterey region at 16 percent.
Leading the way…(R) in real estate news and information for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS(R)
CALIFORNIA ASSOCIATION OF REALTORS(R) is one of the largest state trade organizations in the United States, with nearly 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
*TC.A.R. FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX (1)