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AFFORDABILITY INDEX DROPS FIVE POINTS TO 23; U.S.-CALIF. GAP NOW 33 POINTS
| The percentage of households in California able to afford a median-priced home stood at 23 in August, a 5-point decrease compared to the same period a year ago when the C.A.R. Housing Affordability Index (HAI) was at 28 percent, according to a recent C.A.R. report. The August Index declined by 3 percentage points from July when it stood at 26 points. The minimum household income needed to purchase a median-priced home at $404,870 in California in August was $93,490, based on a typical 30-year, fixed-rate mortgage at 5.66 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $82,150 in August 2002, when the median price of a home was $334,270 and the prevailing interest rate was 6.38 percent. The minimum household income needed to purchase a median-priced home at $177,500 in the U.S. in August was $40,990. At 60 percent, the High Desert was the most affordable region in the state, followed by Sacramento at 39 percent. The Santa Barbara Region was the least affordable region in the state at 14 percent, followed by the Northern Wine Country Region at 15 percent |