California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
California Housing Affordability Edges Up
After hitting a 10-year low in Q3 2017, slightly lower home prices and steady mortgage rates allowed more Californians to purchase a home in the fourth quarter of 2017, according to research by the California Association of Realtors (C.A.R.). The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in the state in Q4 2017 edged up to 29% from 28% in the third quarter of 2017, but was down from 31% in the fourth quarter a year ago.
This marks the 19th consecutive quarter that the index has been below 40%. A minimum annual income of $111,260 was needed to make monthly payments of $2,780, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 4.17% interest rate.
Conversely, C.A.R. found the affordability of condominiums and townhomes dipped in Q4 2017 compared to the previous quarter, with 37% of California households earning the minimum income to qualify for the purchase of a $449,720 median-priced condominium/townhome, down from 38% in the third quarter.
For comments, questions or concerns, please contact Dennis Kaiser


