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C.A.R. REPORTS HOUSING AFFORDABILITY FELL FOUR POINTS IN SEPT
| The percentage of households in California able to afford a median-priced home stood at 25 percent in September, a 4 percentage-point decrease compared to the same period a year ago when the Index was at 29 percent, according to recent C.A.R. report. The September Housing Affordability Index (HAI) increased by 1 percentage point from August when it stood at a revised 24 points. The minimum household income needed to purchase a median-priced home at $380,040 in California in September was $89,930, based on a typical 30-year, fixed-rate mortgage at 5.94 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $78,630 in September 2002, when the median price of a home was $322,450 and the prevailing interest rate was 6.29 percent. At 57 percent, the High Desert Region was the most affordable region in the state, followed by the Sacramento Region at 38 percent. The Santa Barbara and Northern Wine Country Regions were the least affordable regions in the state at 15 percent. |