Realtors: Homes less affordable in 3Q

Source: The Business Journal

Housing affordability dropped in the third quarter of the year but Valley homebuyers were still more fortunate overall. According to new figures by the California Association of Realtors, the percentage of home buyers who could afford a median-priced home fell to 49 percent compared to 51 percent both in the previous quarter and the third quarter of 2011. On average, California homebuyers needed to make a minimum annual income of $65,810 to purchase a single-family home priced at $339,860 with monthly payments of $1,650 on a 30-year fixed-rate loan. In Fresno County, the affordability index was at 69 percent in the latest quarter, down from 71 percent the previous quarter but even with the third quarter of 2011. Homebuyers in the county needed an income of at least $29,620 to afford a median priced home of $152,970 at monthly payments of $740. The affordability index in Tulare County dropped one percentage point to 73 percent, even with last year. A median priced home of $129,470 in the county was achievable with a minimum annual income of $25,070 on payments of $630. Madera County homebuyers were actually met with good news, with 76 percent able to afford a home in the quarter, up from 74 percent 74 percent both in the previous quarter and last year. For a median priced home of $122,000, those buying a home needed an income of $23,630 to meet monthly payments of $590. Kings County's affordability index dropped to 73 percent from 75 percent in the second quarter and 76 percent a year ago. Homebuyers in the county needed an income of at least $29,320 to make the monthly payments of $730 on a home priced at $151,430. For counties that submitted data, San Bernardino had the highest affordability index in the state at 77 percent while San Mateo just edged out San Francisco for the lowest at 24 percent.

URL to original article: http://www.thebusinessjournal.com/news/real-estate/3914-realtors-homes-less-affordable-in-3q

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