Housing affordability in California slumped to its lowest level since 2007, according to data from the California Association of Realtors (CAR).
Fewer than one in five home buyers (15%) were able to afford a median-priced, existing single-family home in California during in third quarter, down from 16% in the previous quarter and down from 18% one year earlier, as per CAR’s Traditional Housing Affordability Index.
A minimum annual income of $221,200 was needed to qualify for the purchase of a $843,600 statewide median-priced, existing single-family home, and the monthly payment (including taxes and insurance) on a 30-year fixed-rate loan, would be $5,530, assuming a 20% down payment and an effective composite interest rate of 7.14%.
CAR also noted in comparison with the national housing market, more than one-third of U.S. households could afford to purchase a $406,900 median-priced home, which required a minimum annual income of $106,800 to make monthly payments of $2,670. Nationwide affordability was down from 39%.
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