December Housing Index shows declining affordability
The California Association of Realtors® (CAR) reports that "The percentage of households in California able to afford a median-priced home stood at 14 percent in December, compared with 19 percent for the same period a year ago."
"At 24 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 percent. Santa Barbara County was the least affordable region in the state at 6 percent, followed by the Northern Wine Country region at 7 percent."
If interest rates continue to climb, we may see a bigger gap in the number of Californians able to afford a home.
To read more: December 2005 housing affordability index