Higher home prices put a dent in Californiaâ€™s housing affordability during the first quarter of 2013, C.A.R. reported.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California dropped to 44 percent in the first quarter of 2013, down from 56 percent in first-quarter 2012 and from 48 percent in fourth-quarter 2012,
according to C.A.R.â€™s Traditional Housing Affordability Index (HAI).
C.A.R.â€™s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California.Â C.A.R. also reports affordability indices for regions and select counties within the state.Â The Index is considered the most fundamental measure of housing well-being for home buyers in the state.Home buyers needed to earn a minimum annual income of $66,800 to qualify for the purchase of a $350,490 statewide median-priced, existing single-family home in the first quarter of 2013.Â
The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,670, assuming a 20 percent down payment and an effective composite interest rate of 3.55 percent.Â
The effective composite interest rate in first-quarter 2012 was 4.16 percent and 3.49 percent in the fourth quarter of 2012.Â More info