Saturday, May 07, 2005

California Association of Realtors (C.A.R.) reports fewer able to afford houses in our state

C.A.R. has released the March housing report. Their Housing Affordability Index is the index they use to express how many can afford the California median priced home. Not a big surprise that it states "The percentage of households in California able to afford a median-priced home stood at 18 percent in March, a 3 percentage-point decrease compared with the same period a year ago when the Index was at 21 percent."

How much income do you have to make? Well, the report goes on to state "The minimum household income needed to purchase a median-priced home at $495,400 in California in March was $115,910, based on an average effective mortgage interest rate of 5.81 percent and assuming a 20 percent downpayment." This is compared to U.S. stats with the median priced home at $195,000 and income needed of $45,620.

No wonder so many people can't afford to live here!

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