More Valley homebuyers challenged in Q2

Source: The Business Journal

The amount of people that could afford to buy a home in the San Joaquin Valley fell in the third quarter of the year as prices continued to rise. 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 56 percent in the latest quarter compared to 61 percent in the previous quarter and 69 percent in the third quarter of 2012. On average, homebuyers in the county needed to make a minimum annual income of $37,920 to purchase a single-family home priced at $184,550 with monthly payments of $950 on a 30-year fixed-rate loan. The affordability index in Tulare County dropped from 66 percent in the second quarter and 73 percent a year ago to 61 percent in the third quarter of the year. That meant homebuyers needed an income of at least $32,700 to afford a home priced at $159,110 on monthly payments of $820. In Madera County, the amount of those who could afford to buy a home stood at 62 percent in the third quarter compared to 61 percent in the prior quarter and 76 percent a year ago. That meant a median priced home of $174,540 was achievable with a minimum annual income of $35,870 on monthly payments of $900. The affordability index in Kings County dropped from 70 percent in the second quarter and 74 percent last year to 62 percent in the latest quarter. Homebuyers in the county needed a minimum income of $35,530 to afford a median priced home of $172,920 on payments of $890 per month. Housing affordability throughout the state stood at 32 percent in the third quarter, down from 36 percent in the second quarter and 49 percent a year ago. On average, California homebuyers needed to make at least $89,170 to afford a home priced at $433,940 on monthly payments of $2,230. For counties that submitted data, Madera and Kings counties had the highest affordability index, while San Mateo County had the lowest index at 15 percent. Nearly every county experienced a double-digit decline in affordability when compared to last year.

URL to original article: http://www.thebusinessjournal.com/news/real-estate/9534-more-valley-homebuyers-challenged-in-q2

For further information on Fresno Real Estate check: http://www.londonproperties.com