IE Business Daily Business news for the Inland Empire.
Housing affordability in California dropped to its lowest point in two years during the third quarter, according to the California Association of Realtors.
Double-digit prices increases and a lack of homes for sale meant only 28 percent of the state’s potential home buyers could afford the median price of $693,680, the trade organization reported recently.
That was a drop of five percent from the second quarter and three percent year-over-year, and the lowest overall affordability rate since the fourth quarter of 2018.
A minimum yearly income of $127,200 was needed to make monthly payments of $3,180.
By comparison, 55 percent of the nation’s households could afford to purchase a $313,500 median-priced home. That required a minimum yearly income of $57,600 to make monthly payments of $1,440.
Forty-two percent of California home buyers were able to purchase the $512,000 median-priced condominium or townhome during the third quarter. An annual income of $94,000 was required to make a monthly payment of $2,350.
All major regions in California experienced a decrease in affordability from the previous quarter and previous year, the association reported.
