Lodinews.com

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

High home prices shut out nearly two-thirds of potential California homebuyers

Print
Font Size:
Default font size
Larger font size

Posted: Saturday, August 17, 2013 5:53 am

Escalating home prices have pushed an affordability index tracked by the California Association of Realtors down to its lowest level in nearly five years. CAR’s Home Affordability Index measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. CAR 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.

The share of homebuyers who could afford to purchase a median-priced, existing single-family home in California fell to 36 percent in the second quarter according to CAR. This is the first time affordability fell below 40 percent since third-quarter 2008.

The fact that significantly higher home prices, particularly in the San Francisco Bay Area and coastal regions, shut out more homebuyers in the state during the second quarter of 2013 doesn’t come as a surprise to anyone in Lodi. Remarkably, Madera County was the most affordable areas for the state at 71 percent.

As of June, California’s median home price had posted monthly double-digit increases for a full year. The price is up 33.5 percent compared to June 2012!

Home buyers needed to earn a minimum annual income of $79,910 to qualify for the purchase of a $415,770 statewide median-priced, existing single-family home in the second quarter of 2013. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $2,000, assuming a 20 percent down payment and an effective composite interest rate of 3.64 percent.

Nearly all regions of the state experienced sharp quarter-over-quarter declines in housing affordability, with the Bay Area and coastal regions recording the greatest decreases in the index due to significantly higher home prices.

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 155,000 members dedicated to the advancement of professionalism in real estate.

Sheri Aguilar is the president of the Lodi Association of Realtors and can be reached at Sheri@YourLocalAOR.com

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

Loan Calculator

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists