Housing affordability on the rise

Buying a home in California got a little easier during the first quarter of this year.

The percentage of home buyers who could afford a median-priced, single-family home in the state rose to 34 percent during the first three months of 2015, up from 31 percent during fourth quarter of last year, according to data released Tuesday by the California Association of Realtors.

Year-over-year, affordability was essentially unchanged: up from 33 percent during the first quarter of 2014.

This was the second consecutive quarter that the state’s housing affordability index has gone up, and the highest it’s been since the second quarter of 2013. The index reached its peak of 56 percent during the first quarter of 2012.

Lower interest rates and more stable prices are the primary reasons for the affordability increase.

Home buyers needed a minimum annual income of $87,700 to qualify for a $442,430 single-family home, the median statewide price during the first three months of this year.

In San Bernardino County, 58 percent of all potential buyers could afford a median-priced home – $212,300 – during the first quarter. In Riverside County, 42 percent could afford a median priced home – $322,620 – during that time, according to the association.