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C.A.R. REPORTS HOUSING AFFORDABILITY FALLS FIVE POINTS IN NOV
| The percentage of households in California able to afford a median-priced home stood at 25 percent in November, a 5 percentage-point decrease compared to the same period a year ago, when the Index was at 30 percent, according to a report released today by the California Association of REALTORS® (C.A.R.). The November Housing Affordability Index (HAI) was unchanged from October, when it also stood at 25 points. C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. The minimum household income needed to purchase a median-priced home at $386,760 in California in November was $90,800, based on a typical 30-year, fixed-rate mortgage at 5.85 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $78,663 in November 2002, when the median price of a home was $328,440 and the prevailing interest rate was 6.08 percent. Nationally, the minimum household income needed to purchase a median-priced home at $170,900 in November 2003 was $40,120. At 57 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 38 percent. The Northern Wine Country region was the least affordable in the state at 15 percent, followed by the San Diego region at 16 percent. |