Just 15% of Families Could Afford Median-Priced Home Here in March
Only 15% of the families in Orange County could afford a median-priced house in March, the same as February, while the statewide rate fell to a 5-year low of 18%.
The Orange County rate was down from 26% in March, 1988, about the time when home prices began to climb dramatically, the California Assn. of Realtors reported Monday.
Income of $77,822 Needed
To afford a $238,807 house--the median price for a detached, single-family, resale residence in March--an Orange County family needed an income of $77,822 to make monthly payments of $1,946.
The association’s estimates are based on resales of homes listed by brokers. They assume that buyers will make a standard 20% down payment, allocate 30% of their monthly income to house payments and take out a mortgage at prevailing interest rates.
The interest rate used to calculate the payment is an average of fixed- and adjustable-rate mortgages. That average was 9.96% in March, the highest since September, 1986. A year ago, the median price of a resale home in Orange County was $191,191.
Orange County’s 15% affordability rate was not the lowest: In the San Francisco Bay Area, with a median home price of $249,508 in March, only 11% of families could afford a house.
In Los Angeles, only 16% could afford the median home price of $210,029.
The statewide figure of 18%, is the lowest percentage since the trade association began keeping track in 1984. March’s figure was down from 19% in February and 25% a year ago.
Condominiums--which dropped slightly in price statewide--were slightly more affordable last month.
Median-Priced Condo
The median-priced condo was $132,850 in March, and 34% of families in metro areas could afford to buy one, up from 33% in February. At the median price, a family needed an income of $43,300 to qualify.
No condominium figures were available for separate markets such as Orange County.
AFFORDABILITY INDEX FOR EXISTING HOMES Fifteen percent of Orange County households could afford to buy the median-priced resale home in the county in March, unchanged from the February percentage. In March, 1988, 26% of county households could afford the median-priced home.
Median Monthly Selling Price Mortgage Payment March Feb. March March Feb. March 1989 1989 1988 1989 1989 1988 Orange County $238,807 $237,409 $191,191 $1,946 $1,908 $1,475 United States $93,100 $91,900 $91,500 $758 $739 $706 California $196,097 $191,352 $154,130 $1,598 $1,538 $1,189 S.F. Bay Area $249,508 $241,695 $190,963 $2,033 $1,942 $1,473 Los Angeles $210,029 $198,655 $162,945 $1,711 $1,596 $1,257 San Diego $166,984 $159,314 $136,483 $1,360 $1,280 $1,053 Riverside $119,884 $115,491 $96,536 $977 $928 $745 San Bernardino
Minimum Percent Annual Income Qualified March Feb. March March Feb. March 1989 1989 1988 1989 1989 1988 Orange County $77,822 $76,303 $58,994 15 15 26 United States $30,339 $29,560 $28,233 46 47 45 California $63,904 $61,500 $47,558 18 19 25 S.F. Bay Area $81,309 $77,681 $58,924 11 12 23 Los Angeles $68,444 $63,848 $50,278 16 18 23 San Diego 54,416 $51,203 $42,113 21 22 28 Riverside $39,067 $37,119 $29,787 32 35 42 San Bernardino
Source: California Assn. of Realtors
