Garrett Harris 4 p.m., July 31
Home Affordability Index Up, Says Trade Group
Record-low interest rates and slumping home values have combined to push the state’s housing affordability index to a level matching record highs set in 2009, the California Association of Realtors is reporting.
Fifty-five percent of Californians can afford to own a median-priced existing single family home, according to the Association’s Traditional Housing Affordability Index. These figures assume a median home price of $282,350, which requires a minimum income of $57,750 per year. Monthly payments for such a property, including estimated taxes and insurance, would be about $1,440. The big assumption in these figures, however, is that the average buyer has access to a down payment of 20 percent, or $56,470, plus closing costs of several thousand dollars.
Local affordability numbers were less upbeat, with 45 percent of San Diegans capable of affording a home in the region. This number is still an improvement from 42 percent in the third quarter of 2011 and 40 percent a year ago.
The Reader reported yesterday that while local real estate values continue to slide, some in the industry believe prices may hit bottom before the end of 2012.
More like this:
- Skyrocketing home prices show signs of stabilizing — Aug. 20, 2013
- Housing affordability rate falls to 38 percent — May 14, 2013
- Low inventory, high demand keep pushing real estate values higher — April 16, 2013
- Still unaffordable — Nov. 13, 2012
- Housing Sales Pace Quickens — June 27, 2012