LOS ANGELES, Feb. 11, 2016 /PRNewswire-USNewswire/
-- Lower interest rates and level home prices combined to perk
up California housing
affordability in the fourth quarter of 2015, compared to the
previous quarter, the CALIFORNIA ASSOCIATION OF
REALTORS® (C.A.R.) said today. Affordability, however,
was down when compared to the previous year.
The percentage of home buyers who could afford to purchase a
median-priced, existing single-family home in California in fourth-quarter 2015 ticked up to
30 percent from the 29 percent recorded in the third quarter of
2015 but was down from 31 percent in fourth-quarter 2014, according
to C.A.R.'s Traditional Housing Affordability Index (HAI). This is
the 11th consecutive quarter that the index has been below 40
percent and is near the mid-2008 low level of 29 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 home buyers in the state.
Home buyers needed to earn a minimum annual income of
$96,640 to qualify for the purchase
of a $483,050 statewide
median-priced, existing single-family home in the fourth quarter of
2015. The monthly payment, including taxes and insurance on a
30-year, fixed-rate loan, would be $2,420, assuming a 20 percent down payment and an
effective composite interest rate of 4.07 percent. The effective
composite interest rate in third-quarter 2015 was 4.16 percent and
4.20 percent in the fourth quarter of 2014.
The median home price was $488,540
in third-quarter 2015, and an annual income of $98,580 was needed to purchase a home at that
price.
Unchanged from the previous quarter and year, 39 percent of
California households earned the
minimum income to qualify for the purchase of a condominium or
townhome in the last quarter of 2015. An annual income of
$78,720 was required to make monthly
payments of $1,970.
Key points from the fourth-quarter 2015 Housing Affordability
report include:
- Compared to affordability in third-quarter 2015, 16 counties
saw an improvement in housing affordability, five experienced
declines, and six were unchanged.
- Regionally, affordability improved slightly across the state
with affordability gains mostly in the higher-priced areas, while
less expensive regions experienced minimal effects due to level
home prices.
- Alameda, Contra Costa, Sonoma, Los
Angeles, and San Joaquin
counties saw the greatest quarter-to-quarter improvement in housing
affordability due to flat home prices and lower interest
rates.
- During the fourth quarter of 2015, the five most affordable
counties in California were
Kings (61 percent), Merced (55 percent), San Bernardino (53 percent), Tulare (54 percent), and Fresno (49 percent).
- San Francisco (11 percent),
San Mateo (14 percent), and Marin
(17 percent) counties were the least affordable areas of the
state.
Housing Affordability slides (click link to open)
Affordability peak versus current*
Annual income peak versus current*
PITI peak versus current*
CALIFORNIA
ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
|
|
C.A.R.
Region
|
Housing
Affordability Index
|
Median Home
Price
|
Monthly
Payment
Including
Taxes
&
Insurance
|
Minimum
Qualifying Income
|
Calif. Single-family
home
|
30
|
$
483,050
|
$
2,420
|
$
96,640
|
Calif.
Condo/Townhome
|
39
|
$
393,470
|
$
1,970
|
$
78,720
|
Los Angeles Metro
Area
|
32
|
$
442,830
|
$
2,210
|
$
88,600
|
Inland
Empire
|
45
|
$
295,550
|
$
1,480
|
$
59,130
|
San Francisco Bay
Area
|
24
|
$
735,170
|
$
3,680
|
$
147,080
|
United
States
|
58
|
$
222,700
|
$
1,110
|
$
44,550
|
|
|
|
|
|
San Francisco Bay
Area
|
|
|
|
|
Alameda
|
22
|
$
728,160
|
$
3,640
|
$
145,680
|
Contra-Costa (Central
County)
|
37
|
$
526,550
|
$
2,630
|
$
105,350
|
Marin
|
17
|
$ 1,171,340
|
$
5,860
|
$
234,350
|
Napa
|
21
|
$
655,940
|
$
3,280
|
$
131,230
|
San
Francisco
|
11
|
$ 1,270,110
|
$
6,350
|
$
254,110
|
San Mateo
|
14
|
$ 1,195,000
|
$
5,980
|
$
239,080
|
Santa
Clara
|
20
|
$
940,000
|
$
4,700
|
$
188,060
|
Solano
|
45
|
$
355,900
|
$
1,780
|
$
71,200
|
Sonoma
|
26
|
$
551,340
|
$
2,760
|
$
110,300
|
Southern
California
|
|
|
|
|
Los
Angeles
|
27
|
$
481,940
|
$
2,410
|
$
96,420
|
Orange
County
|
21
|
$
708,700
|
$
3,540
|
$
141,790
|
Riverside
County
|
39
|
$
340,260
|
$
1,700
|
$
68,070
|
San
Bernardino
|
53
|
$
233,730
|
$
1,170
|
$
46,760
|
San Diego
|
25
|
$
546,770
|
$
2,730
|
$
109,390
|
Ventura
|
26
|
$
608,430
|
$
3,040
|
$
121,730
|
Central
Coast
|
|
|
|
|
Monterey
|
25
|
$
500,950
|
$
2,510
|
$
100,220
|
San Luis
Obispo
|
26
|
$
541,990
|
$
2,710
|
$
108,430
|
Santa
Barbara
|
23
|
$
607,880
|
$
3,040
|
$
121,620
|
Santa Cruz
|
21
|
$
720,000
|
$
3,600
|
$
144,050
|
Central
Valley
|
|
|
|
|
Fresno
|
49
|
$
219,960
|
$
1,100
|
$
44,010
|
Kings
County
|
61
|
$
190,970
|
$
960
|
$
38,210
|
Madera
|
48
|
$
220,830
|
$
1,100
|
$
44,180
|
Merced
|
55
|
$
205,190
|
$
1,030
|
$
41,050
|
Placer
County
|
44
|
$
394,770
|
$
1,970
|
$
78,980
|
Sacramento
|
46
|
$
294,050
|
$
1,470
|
$
58,830
|
San
Joaquin
|
38
|
$
284,820
|
$
1,420
|
$
56,980
|
Stanislaus
|
40
|
$
253,320
|
$
1,270
|
$
50,680
|
Tulare
|
54
|
$
189,300
|
$
950
|
$
37,870
|
CALIFORNIA
ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
|
|
STATE/REGION/COUNTY
|
Q4
2015
|
Q3
2015
|
|
Q4
2014
|
|
Calif. Single-family
home
|
30
|
29
|
|
31
|
|
Calif.
Condo/Townhome
|
39
|
39
|
r
|
39
|
|
Los Angeles Metro
Area
|
32
|
31
|
|
34
|
|
Inland
Empire
|
45
|
45
|
|
47
|
|
San Francisco Bay
Area
|
24
|
22
|
r
|
21
|
|
United
States
|
58
|
56
|
|
59
|
|
|
|
|
|
|
|
San Francisco Bay
Area
|
|
|
|
|
|
Alameda
|
22
|
20
|
|
20
|
|
Contra-Costa
|
37
|
34
|
r
|
40
|
r
|
Marin
|
17
|
19
|
|
15
|
|
Napa
|
21
|
21
|
|
24
|
|
San
Francisco
|
11
|
10
|
|
11
|
r
|
San Mateo
|
14
|
13
|
|
15
|
|
Santa
Clara
|
20
|
19
|
|
22
|
|
Solano
|
45
|
44
|
|
50
|
|
Sonoma
|
26
|
24
|
|
29
|
|
Southern
California
|
|
|
|
|
|
Los
Angeles
|
27
|
24
|
|
28
|
|
Orange
County
|
21
|
20
|
|
21
|
|
Riverside
County
|
39
|
39
|
|
41
|
|
San
Bernardino
|
53
|
54
|
|
57
|
|
San Diego
|
25
|
24
|
|
27
|
|
Ventura
|
26
|
25
|
|
29
|
|
Central
Coast
|
|
|
|
|
|
Monterey
|
25
|
27
|
|
27
|
|
San Luis
Obispo
|
26
|
27
|
|
26
|
|
Santa
Barbara
|
23
|
18
|
|
21
|
|
Santa Cruz
|
21
|
19
|
|
17
|
|
Central
Valley
|
|
|
|
|
|
Fresno
|
49
|
49
|
|
53
|
|
Kings
County
|
61
|
60
|
|
64
|
|
Madera
|
48
|
49
|
|
50
|
r
|
Merced
|
55
|
55
|
|
53
|
|
Placer
County
|
44
|
44
|
|
45
|
|
Sacramento
|
46
|
46
|
|
49
|
|
San
Joaquin
|
38
|
36
|
|
41
|
r
|
Stanislaus
|
40
|
40
|
|
44
|
r
|
Tulare
|
54
|
53
|
|
56
|
|
r =
revised
|
See C.A.R.'s historical housing affordability data.
See first-time buyer housing affordability data.
Follow us on Twitter @CAR Media and @CAREALTORS®
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Leading the way…® in California
real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS®
(www.car.org) is one of the largest state trade organizations in
the United States with 185,000
members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los
Angeles.
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SOURCE CALIFORNIA ASSOCIATION
OF REALTORS