Affordability drops for Valley homebuyers in Q2

Source: The Business Journal

Rising home prices in the second quarter meant fewer homebuyers in the San Joaquin Valley were able to make the deal happen. According to new figures by the California Association of Realtors, the percentage of homebuyers who could afford a median-priced home in Fresno County dropped to 61 percent in the latest quarter compared to 64 percent in the previous quarter and 71 percent in the second quarter of 2012. On average, homebuyers in the county needed to make a minimum annual income of $33,050 to purchase a single-family home priced at $171,950 with monthly payments of $830 on a 30-year fixed-rate loan. The affordability index in Tulare County dropped from 70 percent in the first quarter and 73 percent a year ago to 66 percent in the second quarter of the year. That meant homebuyers needed an income of at least $29,360 to afford a home priced at $152,730 on monthly payments of $730. In Madera County, the amount of those who could afford to buy stood at 71 percent in the second quarter compared to 77 percent in the first quarter and 74 percent a year ago. That meant a median priced home of $150,910 was achievable with a minimum annual income of $29,010 on monthly payments of $730. The affordability index in Kings County remained steady at 70 percent, but marked a decline from 74 percent in the second quarter of last year. Homebuyers in the county needed a minimum income of $28,980 to afford a median priced home of $150,770 on payments of $720 per month. Housing affordability throughout the state dropped from 44 percent in the first quarter and 51 percent a year ago to 36 percent in the latest quarter. On average, California homebuyers needed to make at least $79,910 to afford a home priced at $415,770 on monthly payments of $2,000. For counties that submitted data, Madera County had the highest affordability index, while San Francisco County tied San Mateo County with the lowest index at 17 percent.

URL to original article: http://www.thebusinessjournal.com/news/real-estate/7239-affordability-drops-for-valley-homebuyers-in-q2

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