California's Housing Affordability Index at 19 Percent in September; Down Five Points From Year Ago

Nov 11, 2004, 00:00 ET from California Association of REALTORS

    LOS ANGELES, Nov. 11 /PRNewswire/ -- The percentage of households in
 California able to afford a median-priced home stood at 19 percent in
 September, a 5 percentage-point decrease compared with the same period a year
 ago when the Index was at 24 percent, according to a report released today by
 the California Association of REALTORS(R) (C.A.R.).  The September Housing
 Affordability Index (HAI) increased 1 percentage-point compared to August,
 when it stood at 18 percent.
     C.A.R.'s monthly housing affordability index measures the percentage of
 households that can afford to purchase a median-priced home in California.
 C.A.R. also reports housing affordability indexes for regions and select
 counties within the state.  The index is the most fundamental measure of
 housing well-being in the state.
     The minimum household income needed to purchase a median-priced home at
 $465,540 in California in September was $107,880, based on an average
 effective mortgage interest rate of 5.70 percent and assuming a 20 percent
 downpayment.  The minimum household income needed to purchase a median-priced
 home was up from $91,030 in September 2003, when the median price of a home
 was $384,690 and the prevailing interest rate was 5.94 percent.
     The minimum household income needed to purchase a median-priced home at
 $186,600 in the U.S. in September 2004 was $43,240.
     At 42 percent, the High Desert region was the most affordable C.A.R.
 region in the state, followed by the Central Valley region at 26 percent.  The
 Santa Barbara region was the least affordable in the state at 6 percent,
 followed by the San Diego region at 11 percent.
     C.A.R.'s October 2004 sales and median price report for the state and
 regions within the state will be released on Sept. 23.
 
     The California Association of REALTORS(R) (http://www.car.org) is one of
 the largest state trade organizations in the United States, with more than
 150,000 members dedicated to the advancement of professionalism in real
 estate.  C.A.R. is headquartered in Los Angeles.
 
 
      C.A.R. HOUSING AFFORDABILITY INDEX *
 
                                            Sep-04       Aug-04        Sep-03
     California                                 19           18            24
     California - Condos                        28           27            35
     United States                              55           54            56
     C.A.R. REGION
     Central Valley                             26           26            34
     High Desert                                42           42            57
     Los Angeles                                17           17            24
     Monterey Region                            12           12            15
     Northern
     California                                 20           20            26
     Northern Wine Country                      13           13            15
     Orange County                              13           11            18
     Palm Sprgs/Lwr Desert                      13           13            21
     Riverside/SBernardino                      22           21            35
     Sacramento                                 25           26            38
     San Diego                                  11           10            17
     San Francisco Bay Area                     15           14            19
     San Luis Obispo                            13           14            20
     Santa Barbara County                        6           14            14
     Santa Clara                                23           23            26
     Ventura                                    16           14            22
     COUNTY
     Alameda                                    15           15            19
     Contra Costa                               10           10            10
     Fresno                                     27           27            41
     Marin                                      15           14            18
     Merced                                     22           21            31
     Riverside                                  18           18            32
     San Bernardino                             28           28            42
     San Francisco                              12           11            12
     San Joaquin                                18           19            29
     San Mateo                                  16           15            18
     Santa Cruz                                 14           14            17
     Sonoma                                     13           13            16
     Stanislaus                                 29           28            35
 
      * -- percentage of California households that can afford to purchase a
           median-priced home
      r -  revised
      Source:  California Association of REALTORS(R)
 
 
     Median Prices By Region - Current Month vs. Year Ago
 
                                  Sep-04         Aug-04           Sep-03
     Statewide
     Calif. (sf)                  $465,540       $473,360   r     $384,690 r
     Calif. (condo)               $369,830       $370,860   r     $301,410 r
     C.A.R. REGION
     Central Valley               $293,770       $289,360   r     $231,950 r
     High Desert                  $238,340       $236,890         $169,280
     Los Angeles                  $459,660       $455,590   r     $369,740
     Monterey Region              $628,660       $613,120         $511,940
     Monterey County              $575,000       $555,000         $463,750
     Santa Cruz County            $645,000       $639,000         $545,000
     Northern California          $374,810       $366,050         $299,860
     Northern Wine Country        $505,290       $505,790         $438,200
     Orange County                $633,340       $649,590         $515,110
     Palm Spgs/Lower Desert       $341,460       $326,740         $245,790 r
     Riverside/San Bernardino     $306,180       $310,120         $226,730
     Sacramento                   $337,520       $328,410   r     $256,160 r
     San Diego                    $573,080       $579,040         $433,820
     San Francisco Bay            $642,360       $644,920         $564,270
     San Luis Obispo              $483,900       $454,720         $370,940
     Santa Barbara County         $756,250       $495,740         $450,000 r
     S. Barbara South Coast       $949,000     $1,010,000   r     $950,000 r
     N. Santa Barbara County      $432,650       $411,700   r     $339,230
     Santa Clara                  $630,000       $625,000         $558,000
     Ventura                      $613,200       $626,730         $494,470
 
      na - not available
      r - revised
      Source:  California Association of REALTORS(R)
 
 
 

SOURCE California Association of REALTORS

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