IE Business Daily Business news for the Inland Empire.
Only 15 percent of California households could afford the state’s $874,290 median-priced home in the fourth quarter of 2024, according to the California Association of Realtors.
That was a 16 percent drop from the third quarter, but unchanged compared with the fourth quarter of 2023, the Los Angeles-based trade association reported.
The quarter-over-quarter drop was attributed to a rise in mortgage rates and higher home prices, as well as borrowing costs that were near all-time highs.
A yearly salary of at least $220,000 was needed to make monthly home payments $5,500. That includes principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.76 percent interest rate.
In the Inland Empire, 20 percent of all households during the fourth quarter could afford the median home price of $597,500, down two percent from the third quarter but unchanged from the fourth quarter of 2023, the association reported.
