C.A.R. Reports California's Housing Affordability Index Fell Two Points to 16 Percent in June
The percentage of households in California able to afford a median-priced home stood at 16 percent in June, a 2 percentage-point decrease compared with the same period a year ago when the Index was at 18 percent, according to a report released today by the California Association of REALTORS(R) (C.A.R.). The June Housing Affordability Index (HAI) was unchanged from May, when it also stood at 16 percent.
C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being in the state.
The minimum household income needed to purchase a median-priced home at $542,720 in California in June was $125,870, based on an average effective mortgage interest rate of 5.71 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $111,420 in June 2004, when the median price of a home was $468,050 and the prevailing interest rate was 6.01 percent.
The minimum household income needed to purchase a median-priced home at $219,000 in the U.S. in June 2005 was $50,790.
At 32 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 21 percent. The Santa Barbara and Northern Wine Country regions were the least affordable in the state at 7 percent.
C.A.R.'s July 2005 sales and median price report for the state and regions within the state will be released on Tuesday, August 23.
Leading the Way...(R) in California real estate for 100 years, the California Association of REALTORS(R) (www.car.org) is one of the largest state trade organizations in the United States, with more than 170,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
C.A.R. HOUSING AFFORDABILITY INDEX(a)
Jun-05 May-05 Jun-04
California 16 16 18
California - Condos 21 22 26
United States 48 51 r 53
C.A.R. REGION
Central Valley 18 19 27
High Desert 32 33 43
Los Angeles 15 15 17
Monterey Region 9 10 11
Northern California 15 17 21
Northern Wine Country 7 7 13
Orange County 11 11 11
Palm Sprgs/Lwr Desert 10 10 12
Riverside/S Bernardino 16 20 21
Sacramento 21 20 26
San Diego 9 9 10
San Francisco Bay Area 12 12 14
San Luis Obispo 10 11 14
Santa Barbara County 7 6 10
Santa Clara 18 18 21
Ventura 13 13 13
COUNTY
Alameda 11 11 14
Contra Costa 10 10 10
Fresno 20 20 29
Marin 10 12 13
Merced 11 14 23
Riverside 14 18 17
San Bernardino 20 24 29 r
San Francisco 9 8 10
San Joaquin 13 13 22
San Mateo 12 11 14
Santa Cruz 10 11 16
Sonoma 7 7 13
Stanislaus 18 19 30
(a) -- percentage of California households that can afford to
purchase a median-priced home
r -- revised
Median Prices By Region - Current Month vs. Year Ago
Jun-05 May-05 Jun-04
----------------------------------------- ----------- - ----------- -
Statewide
Calif. (sf) $542,720 $522,900 r $468,050 r
Calif. (condo) $433,690 $420,600 r $374,950 r
Region
Central Valley $353,220 $343,610 $279,490
High Desert $290,510 $282,510 $225,260
Los Angeles $512,890 $503,450 $445,140
Monterey Region $730,470 $689,050 $621,920
Monterey County $675,000 $639,000 $575,000
Santa Cruz County $793,000 $757,200 $599,500
Northern California $442,940 $405,190 r $347,980
Northern Wine Country $640,970 $622,660 $500,840
Orange County $702,400 $704,150 $657,930
Palm Sprgs/Lwr Desert $393,370 $388,280 $346,700
Riverside/San Bernardino $373,860 $364,700 $304,810
Sacramento $381,990 $379,790 $320,800 r
San Diego $614,120 $608,300 $580,670
San Francisco Bay $734,610 $721,730 $655,990
San Luis Obispo $570,870 $534,440 $446,530
Santa Barbara County $704,270 $746,950 $572,370
Santa Barbara S. Coast $1,260,000 $1,247,500 $1,095,000
N. Santa Barbara Cty. $463,380 $468,520 $386,440
Santa Clara $760,000 $749,000 $642,000
Ventura $685,760 $667,130 $625,000
na - not available
r - revised
