The Petalumahomes.com Realty Weblog

(Courtesy of CAR.org)

For release: Thursday, May 14, 2009

Quick Facts:
· C.A.R. First-time Buyer Housing Affordability Index stood at 69 percent in the first quarter of 2009 compared with 46 percent (revised) in the first quarter of 2008 & 25 percent in 2007
· The median price of an entry-level home in California was $213,040 in the first quarter of 2009
· The estimated monthly payment including taxes and insurance was $1,270 in the first quarter of 2009
· The minimum household income needed to purchase an entry-level home in California in the first quarter of 2009 was $38,090

C.A.R. reports entry-level housing affordability reached 69 percent in the first quarter of 2009

LOS ANGELES (May 14) The percentage of households that could afford to buy an entry-level home in California stood at 69 percent in the first quarter of 2009, compared with 46 percent (revised) for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

C.A.R.’s First Time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at $213,040 in California in the first quarter of 2009 was $38,090, based on an adjustable interest rate of 4.96 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,270 for the first quarter of 2009.

At $38,090, the minimum qualifying income was 41 percent lower than a year earlier when households needed $65,030 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with the income level of a typical California household, where the median household income is $61,030.

The First-Time Buyer Housing Affordability Index also rose 7 percentage points in the first quarter of this year compared with the fourth quarter of 2008, due to a 14.1 percent decrease in the entry-level median home price.

At 83 percent, the High Desert region was the most affordable area in the state. The San Luis Obispo County region was the least affordable in the state at 49 percent, followed by the Orange County region at 56 percent.

Note: The effective interest rate series previously used to calculate C.A.R.’s First-Time Buyer Housing Affordability Index (FTB-HAI) was discontinued in 2008. Beginning with this news release, the FTB-HAI will incorporate an effective interest rate that is based on the one-year, adjustable-rate mortgage (ARM) from Freddie Mac’s Primary Mortgage Market Survey (PMMS). The effective rate accounts for both the one-year ARM rate and the points/fees as reported by Freddie Mac. The revised statewide historical series for the period 2000-Q1 through 2009-Q1 is posted on the C.A.R. Web site at www.car.org; the complete revised historical series for the counties and regions will be posted on car.org on May 21.

  C.A.R. First-Time Buyer Housing Affordability Index

C.A.R. Region	Q1 2009	Q4 2008		Q1 2008
California	69	62	r	46	r
California - Condos	73	68	r	52	r
United States	76	74	r	71	r
High Desert	83	78	r	65	r
Los Angeles County	57	49	r	36	r
Monterey Region	71	61	r	31	r
Northern California	63	60	r	53	r
Northern Wine Country	60	56	r	42	r
Orange County	56	52	r	38	r
Palm Sprgs/Lwr Desert	75	68	r	44	r
Riverside/SBernardino	77	72	r	58	r
Sacramento County	80	76	r	65	r
San Diego County	61	59	r	43	r
San Francisco Bay	62	50	r	32	r
San Luis Obispo County	49	47	r	33	r
Santa Barbara Area	64	58	r	33	r
Santa Clara County	62	53	r	33	r
Southern California	67	61	r	44	r
Ventura County	65	61	r	45	r
County
Alameda	62	51	r	36	r
Contra Costa	50	38	r	33	r
Fresno	77	72	r	58	r
Marin	41	33	r	25	r
Merced	84	81	r	63	r
Riverside	77	73	r	57	r
San Bernardino	79	73	r	61	r
San Francisco	39	33	r	25	r
San Joaquin	n.a.	n.a.		n.a.
San Mateo	51	40	r	24	r
Santa Cruz	53	46	r	30	r
Sonoma	63	59	r	44	r
Stanislaus	n.a.	n.a.		n.a.

* — percentage of California households that can afford to purchase a median-priced home
r – revised
Source:  CALIFORNIA ASSOCIATION OF REALTORS®

 

C.A.R. Region	Housing Affordability Index	Entry-Level Price	Monthly Payment Including Taxes & Insurance	Minimum Qualifying Income
California	69	$213,040	$1,270	$38,090
California - Condos	73	$186,440	$1,110	$33,330
United States	76	$143,650	$860	$25,680
High Desert	83	$103,220	$620	$18,450
Los Angeles County	57	$257,970	$1,540	$46,120
Monterey Region	71	$210,960	$1,260	$37,720
Northern California	63	$218,600	$1,300	$39,080
Northern Wine Country	60	$277,270	$1,650	$49,570
Orange County	56	$370,410	$2,210	$66,220
Palm Sprgs/Lwr Desert	75	$132,480	$790	$23,690
Riverside/SBernardino	77	$146,660	$870	$26,220
Sacramento County	80	$143,870	$860	$25,720
San Diego County	61	$274,700	$1,640	$49,110
San Francisco Bay	62	$341,680	$2,040	$61,090
San Luis Obispo County	49	$306,570	$1,830	$54,810
Santa Barbara Area	64	$246,980	$1,470	$44,150
Santa Clara County	62	$382,500	$2,280	$68,380
Southern California	67	$220,150	$1,310	$39,360
Ventura County	65	$308,560	$1,840	$55,160
County
Alameda	62	$299,760	$1,790	$53,600
Contra Costa	50	$441,040	$2,630	$78,860
Fresno	77	$120,500	$720	$21,550
Marin	41	$612,760	$3,650	$109,560
Merced	84	$89,040	$530	$15,920
Riverside	77	$146,820	$880	$26,250
San Bernardino	79	$131,850	$790	$23,580
San Francisco	39	$511,840	$3,050	$91,520
San Joaquin	n.a.	n.a.	n.a.	n.a.
San Mateo	51	$478,130	$2,850	$85,490
Santa Cruz	53	$348,500	$2,080	$62,310
Sonoma	63	$275,500	$1,640	$49,260
Stanislaus	n.a.	n.a.	n.a.	n.a.

Source:  CALIFORNIA ASSOCIATION OF REALTORS®

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