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.