IE Business Daily Business news for the Inland Empire.
Fourteen percent of California households could afford a median-priced home – $906,600 – during the second quarter of this year, according to data released Aug.13.
That was a 17 percent drop from the first quarter and a 16 percent decline year-over-year, the California Association of Realtors reported.
To afford that purchase, a yearly income of at least $236,800 was needed to make monthly payments of $5,920. That assumes a 30-year fixed-rate mortgage at a 7.10 percent interest, including principal, interest and taxes.
Also during the second quarter, 22 percent of home buyers could purchase a $690,000 median-priced condominium or townhome. A minimum annual income of $180,000 was required to make monthly payments of $4,500.
Compared with the first quarter, housing affordability declined in 40 counties and did not change in six. Year-over-year, six counties recorded an improvement in affordability, while 39 counties posted a decline.
In the Inland Empire, 20 percent of the households could afford a median-priced home – $600,000 – during the second quarter, down one percent quarter-over-quarter and two percent year-over-year. Those numbers assume an annual income of at least $156,400 to make minimum monthly payments of $3,910, according to the association.
