More Californians could afford to purchase a home in the fourth quarter of 2017, up a percentage point to 29% from the third quarter, a positive report from the CaliforniaAssociation of REALTORS® this month in its Traditional Housing Affordability Index.
This means a minimum annual income of $111,260 was needed to qualify for the purchase of a $550,990 statewide median-priced, existing single-family home.
The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,780, assuming a 20% down payment and an effective composite interest rate of 4.17%.
The affordability of condominiums and townhomes was down a point in the fourth quarter, to 37% of California households that were able to purchase a median-priced ($449,720) condo or townhome.
It would take an annual income of $90,810 to make the monthly payment of $2,270.
This is the 19th consecutive quarter that the affordability index has been below 40%. The state hit a peak of 56% in the first quarter of 2012.
The index measures the percentage of all households that can afford to purchase a median-priced single-family home in California, and is considered the most fundamental measure of housing well-being for homebuyers in the state, according to C.A.R.