Only 17% of California homebuyers could afford to purchase a median-priced, existing single-family home during the first quarter of this year, according to data from the California Association of Realtors (CAR). This is up from 15% in the previous quarter and unchanged from one year ago.
Compared with California, more than one-third (37%) of the nation’s households could afford to purchase a $402,300 median-priced home, which required a minimum annual income of $103,600 to make monthly payments of $2,590.
A minimum annual income of $218,000 was needed to qualify for the purchase of a $846,830 median-priced, existing single-family California home in the first quarter. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $5,450, assuming a 20% down payment and an effective composite interest rate of 6.93%. The monthly minimum mortgage payment for a median-priced home (including taxes and insurance) was down by 1.8% from the previous quarter, but it was also up 4.6% from one year earlier.
The share of California households that could afford a typical condo/townhome in the first quarter was 24%, unchanged on a quarterly and annual measurement. An income of $172,400 was required to make the monthly payment of $4,310 on the $670,000 median-priced condo/townhome in the first quarter.
