Wed Aug 7, 2019 9:00am EST
- Thirty percent of California households could afford to purchase the $608,660 median-priced home in the second quarter of 2019, down from 32 percent in first-quarter 2019 but up from 26 percent a year ago.

LOS ANGELES, Aug. 7, 2019 /PRNewswire/ -- Higher home prices negated the lowest interest rates in more than a year and reduced Californians' ability to afford a home purchase in the second quarter of 2019, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2019 dipped to 30 percent from 32 percent in the first quarter of 2019 but was up from 26 percent in the second quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). California's housing affordability index hit a peak of 56 percent in the second quarter of 2012.

C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $122,960 was needed to qualify for the purchase of a $608,660 statewide median-priced, existing single-family home in the second quarter of 2019. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,070, assuming a 20 percent down payment and an effective composite interest rate of 4.17 percent. The effective composite interest rate was 4.62 percent in first-quarter 2019 and 4.70 percent in second-quarter 2018. 

Housing affordability for condominiums and townhomes also slipped in first-quarter 2019 compared to the previous quarter, with 40 percent of California households earning the minimum income to qualify for the purchase of a $475,000 median-priced condominium/townhome, down from 41 percent in the previous quarter. An annual income of $95,960 was required to make monthly payments of $2,400. Thirty-six percent of households could afford to buy a condominium/townhome a year ago.

Compared with California, more than half of the nation's households (55 percent) could afford to purchase a $279,600 median-priced home, which required a minimum annual income of $56,480 to make monthly payments of $1,410.

Key points from the second-quarter 2019 Housing Affordability report include:

  • When compared to a year ago, housing affordability improved in 42 tracked counties and declined in five counties. Affordability remained flat in one county.
  • In the San Francisco Bay Area, affordability improved from second-quarter 2018 in every county. San Francisco County was the least affordable, with just 17 percent of households able to purchase the $1,700,000 median-priced home. Forty-six percent of Solano County households could afford the $445,000 median-priced home, making it the most affordable Bay Area county.
  • Affordability also improved in all Southern California regions, with Orange County being the least affordable (24 percent) and San Bernardino County being the most affordable (50 percent).
  • In the Central Valley region, only Kern County experienced a decline in affordability from a year ago, decreasing from 53 percent in second-quarter 2018 to 50 percent in second-quarter 2019. San Benito County (35 percent) was the least affordable and Kings County (55 percent) was the most affordable.
  • Housing affordability improved in three counties in the Central Coast region — Monterey, San Luis Obispo and Santa Cruz — and was unchanged in one, Santa Barbara.
  • During the second quarter of 2019, the most affordable counties in California were Lassen (63 percent), Kings (55 percent) and Madera (51 percent). The minimum annual income needed to qualify for a home in these counties was less than $60,000.
  • Mono (15 percent), San Francisco (17 percent), Santa Cruz (17 percent) and San Mateo (18 percent) counties were the least affordable areas in the state. San Francisco and San Mateo counties required the highest minimum qualifying incomes in the state. An annual income of $343,420 was needed to purchase a home in San Francisco County, and an annual income of $338,870 was required in San Mateo County.

See C.A.R.'s historical housing affordability data.
See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS®

Traditional Housing Affordability Index

Second quarter 2019


STATE/REGION/COUNTY

2nd Qtr.

2019

1st Qtr.

2019


2nd Qtr.

2018


Median

Home

Price

Monthly

Payment

Including

Taxes &

Insurance

Minimum

Qualifying

Income

Calif. Single-family home

30

32


26


$608,660

$3,070

$122,960

Calif. Condo/Townhome

40

41


36


$475,000

$2,400

$95,960

Los Angeles Metro Area

32

33


29


$540,000

$2,730

$109,090

Inland Empire

42

42


41


$380,000

$1,920

$76,760

San Francisco Bay Area

24

26


18


$980,000

$4,950

$197,970

United States

55

57


53


$279,600

$1,410

$56,480










San Francisco Bay Area









Alameda

23

25


16


$950,000

$4,800

$191,910

Contra Costa

35

37


29


$690,000

$3,480

$139,390

Marin

21

21


18


$1,381,250

$6,980

$279,030

Napa

28

29


25


$710,000

$3,590

$143,430

San Francisco

17

17


14


$1,700,000

$8,580

$343,420

San Mateo

18

18


14


$1,677,500

$8,470

$338,870

Santa Clara

20

20


16


$1,330,000

$6,720

$268,680

Solano

46

46


38


$445,000

$2,250

$89,900

Sonoma

28

27


20


$660,000

$3,330

$133,330

Southern California









Los Angeles

29

28


26


$567,010

$2,860

$114,540

Orange

24

24


20


$835,000

$4,220

$168,680

Riverside

39

39


37


$420,000

$2,120

$84,840

San Bernardino

50

50


49


$310,000

$1,570

$62,620

San Diego

27

27


23


$655,000

$3,310

$132,320

Ventura

30

29


28


$650,000

$3,280

$131,300

Central Coast









Monterey

24

25


19


$630,000

$3,180

$127,270

San Luis Obispo

25

26


22


$640,000

$3,230

$129,290

Santa Barbara

20

25


20


$724,500

$3,660

$146,360

Santa Cruz

17

17


12


$937,500

$4,740

$189,390

Central Valley









Fresno

48

48


46


$279,920

$1,410

$56,550

Kern

50

50


53


$255,000

$1,290

$51,510

Kings

55

57


50


$250,000

$1,260

$50,500

Madera

51

52


48


$277,000

$1,400

$55,960

Merced

47

46


42


$282,000

$1,420

$56,970

Placer

45

46


41


$514,950

$2,600

$104,030

Sacramento

44

44


41


$385,000

$1,940

$77,770

San Benito

35

31


30


$571,500

$2,880

$115,330

San Joaquin

44

43


38


$380,000

$1,920

$76,760

Stanislaus

48

47


45


$325,250

$1,640

$65,700

Tulare

50

51


48


$247,500

$1,250

$50,000

Other Calif. Counties








Amador

NA

NA


44


NA

NA

NA

Butte

35

34


38


$370,000

$1,870

$74,740

Calaveras

46

47


43


$343,000

$1,730

$69,290

El Dorado

40

40


38


$519,500

$2,620

$104,940

Humboldt

37

36


33


$320,000

$1,610

$64,570

Lake

44

44


37


$267,000

$1,350

$53,820

Lassen

63

63


64


$204,000

$1,030

$41,080

Mariposa

45

41


39


$300,000

$1,510

$60,350

Mendocino

29

28


22


$400,000

$2,010

$80,380

Mono

15

10


14


$699,500

$3,510

$140,410

Nevada

40

40


32


$419,000

$2,100

$84,020

Plumas

37

48


42


$367,390

$1,840

$73,600

Shasta

47

44


46


$281,000

$1,410

$56,230

Siskiyou

49

53


48


$232,500

$1,160

$46,480

Sutter

46

46


45


$312,500

$1,560

$62,400

Tehama

47

43


51


$244,000

$1,220

$48,680

Tuolumne

48

45


43


$300,000

$1,490

$59,790

Yolo

40

39


33


$455,000

$2,260

$90,590

Yuba

46

46


45


$305,000

$1,520

$60,660


NA = not available

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/california-housing-affordability-dips-in-second-quarter-2019-car-reports-300897710.html

SOURCE CALIFORNIA ASSOCIATION OF REALTORS



More Trending News & Market Analysis