Houses Slipping Farther Out of Buyers’ Grasp : Only 16% of County Families, a Record Low, Can Afford $234,935 Median Price

The average house in Orange County got a little bit farther out of reach in September, with the number of people able to afford a home falling to record lows in the county and in the state.

A jump of nearly $10,000 in the median price put a used single-family home beyond the reach of all but 16% of Orange County’s families, the California Assn. of Realtors said Monday.

That home cost $234,934 in September, up from $224,828 in August, when 17% were able to afford it.

San Francisco was even tougher for home buyers, with only 12% of the Bay Area’s families able to afford the $216,510 median-priced home.

Across the state, single-family homes became harder to purchase in September. The Los Angeles-based trade association said that only 23% of families statewide could afford the median-priced house at $174,094. In August, 24% of families could afford the house.

A strong surge of demand and a limited supply has pushed housing prices through the roof in Orange County.

Last September the median price of a used house in the county was $171,990, and 28% of the county’s families could afford it.

By contrast, nearly half the families in the nation could afford the average home, which cost $88,500.

Eventually the skyrocketing prices are expected to choke off demand by pricing many buyers out of the market. Experts say that may have already happened to some extent in Orange County, which now has one of the most expensive housing markets in the nation.

The trade association calculates its index by assuming that a household can make a 20% down payment and put 30% of its monthly income into payments. The association uses the average interest rate of both fixed- and variable-rate mortgages.

Using those figures, the association determined an Orange County household would need an annual income of $72,873 to qualify for loan payments of $1,822 a month on the average house.

Based on estimates of household income, only 16% could afford the payments, the trade association said.

AFFORDABILITY INDEX FOR EXISTING HOMES

Median Monthly Selling Price Mtg. Pymt. Sept. Sept. Sept. August Sept. ’88 ’87 ’88 ’88 ’87 Orange County $234,934 $171,990 $1,822 $1,747 $1,330 United States 88,500 85,100 686 710 658 California 174,094 147,370 1,350 1,340 1,139 S.F. Bay Area 216,510 176,596 1,679 1,680 1,365 Los Angeles 191,166 157,195 1,482 1,501 1,215 San Diego 153,615 132,787 1,191 1,182 1,043 Riverside/ 113,895 100,441 883 842 777 San Bernardino

Minimum Percent Annual Income Qualified Sept. Sept. Sept. Sept. ’88 ’87 ’88 ’87 Orange County $72,973 $53,189 16 28 United States 27,451 26,318 48 49 California 54,000 45,575 23 30 S.F. Bay Area 67,158 54,613 12 17 Los Angeles 59,297 48,614 17 25 San Diego 47,649 41,719 25 29 Riverside/ 35,325 31,062 39 43 San Bernardino

Source: California Assn. of Realtors