Monday, June 21, 2004

Want to buy a house? Hopefully you make over $100,000 a year!

The California Assocation of Realtors (C.A.R.) reports that for the first time, the minimum household income that you would need to purchase a median-priced home in California tops $100,000.

According to C.A.R.:
"The minimum household income needed to purchase a median-priced home at $453,590 in California in April was $102,550, based on a typical 30-year, fixed-rate mortgage at 5.42 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $84,510 in April 2003, when the median price of a home was $364,040 and the prevailing interest rate was 5.72 percent."

C.A.R. goes on to describe the U.S. market:

"The minimum household income needed to purchase a median-priced home at $176,000 in the U.S. in April 2004 was $39,790."

To read the entire press release, go here. There are some interesting charts in the press release regarding affordability throughout the state of California.

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