Home affordability dwindles in Q4

Source: The Business Journal

The dream of owning a house crept further out of reach for many homebuyers in the San Joaquin Valley during the fourth quarter of last year. 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 55 percent in the latest quarter compared to 56 percent in the previous quarter and 70 percent in the fourth quarter of 2013. On average, homebuyers in the county needed to make a minimum annual income of $38,910 to purchase a single-family home priced at $188,140 with monthly payments of $970 on a 30-year fixed loan. The affordability index in Tulare County dropped from 61 percent in the third quarter of last year and 71 percent a year ago to 60 percent in the fourth quarter of 2013. That meant homebuyers needed an income of at least $33,340 to afford a home priced at $161,200 on monthly payments of $830. In Madera County, the amount of those who could afford to buy a home actually picked up to 67 percent in the fourth quarter compared to 62 percent in the previous quarter, but fell from 74 percent a year ago. That meant a median priced home of $157,140 was achievable with a minimum annual income of $32,500 on monthly payments of $810. The affordability index in Kings County was unchanged in the quarter at 62 percent but dropped from 76 percent in the fourth quarter of 2012. Homebuyers in the county needed a minimum income of $35,340 to afford a median price home of $170,870 on monthly payments of $880. Housing affordability throughout the state stood at 32 percent in the fourth quarter of last year, the same as in the third quarter but down from 48 percent in the fourth quarter of 2012. On average, California homebuyers needed to make at least $89,240 each year to afford a home priced at $431,510 on monthly payments of $2,230. For counties that submitted data, Madera and Kings counties had the highest affordability index, while San Francisco and San Mateo counties had the lowest index at 16 percent. Nearly every county experienced a double-digit decline in affordability when compared to the year before.

 URL to original article: http://www.thebusinessjournal.com/news/real-estate/10737-home-affordability-dwindles-in-q4 

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