Housing affordability index remains low
Only 29 percent of all California households could afford a median priced home – $550,990 – during the fourth quarter of last year, a year-over-year drop of three percent, according to data recently released.
An annual income of $111,260 was required to make that purchase, assuming monthly payments of $2,780 on a 30-year fixed-rate mortgage, the California Association of Realtors reported.
The Los Angeles-based association’s Home Affordability Index has now been below 40 percent for 19 consecutive quarters. The index hit its peak – 56 percent – during the first quarter of 2012.
In Riverside County, 38 percent of all households could afford a median-priced home of $385,000. That was down from 41 percent year-over-over, when the median price was $365,380.
In San Bernardino County, 50 percent could afford a median-priced home of $276,250, compared with 54 percent one year earlier, when the median price was $251,100, according to the association.