State housing affordability improves slightly

Sixteen percent of California households could afford a median-priced single-family home – $880,250 – during the quarter that ended Sept. 30, according to the California Association of Realtors.

That was up from 14 percent during the second quarter and up 15 percent in the third quarter of 2023, the Los Angeles-based association reported.

An annual income of at least $220,800 was needed to make monthly mortgage payments of $5,520. That number includes principal, interest and taxes, and it assumes a 30-year fixed-rate mortgage at a 6.6 percent interest.

Twenty-five percent of home buyers were able to purchase a condominium or townhome, the median price in that sector being $670,000. A minimum annual income of $168,000 was needed to cover $4,200 monthly payments.

“The statewide median price of existing single-family homes in California declined 2.9 percent quarter-to-quarter, due partly to seasonal factors but also a change in the mix of sales,” the association’s quarterly report reads. “Year-over-year, California continued to record price increases for the fifth consecutive quarter.”

In the Inland Empire during the third quarter, 22 percent of the households could afford a median-priced home: $590,000. That purchase would require a minimum annual income of $148,000 and monthly payments of $3,700.

During the second quarter of this year and the third quarter of 2023, 20 percent of Inland residents could affording a median-priced home, according to the association.