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Fewer Families Can Afford Median-Price Homes in May

From Times Wire Services

A record low 13% of households in Orange County could afford to buy the median-priced house in May, down from 14% in April, the California Assn. of Realtors reported Thursday.

The median-priced home in May sold for $247,397, which meant that a household needed a minimum annual income of $83,561 and faced monthly payments of $2,089. Just a year ago, 25% of the households in Orange County could afford to buy the median-priced home, which sold then for $199,019.

Statewide, the percentage of California households that could afford to purchase the median-priced home declined to 15%, the lowest rate since the association began keeping affordability statistics in January, 1984.

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Assuming a 20% down payment on the median-priced home, which sold for $201,930 in May, a household needed a minimum annual income of $68,204 and faced monthly payments of $1,705, including insurance and property taxes.

In April, 17% of households could afford the median-priced house.

The statewide affordability rate was drastically lower than a year ago, when 23% of households could afford to purchase a median-priced home, which then sold for $163,578.

Condominiums were more affordable, but they’re exceeding the reach of many Californians too.

Thirty percent of households earned the minimum annual income needed to qualify for a mortgage loan to purchase the median-priced existing condo, which sold for $139,117 in May.

The San Francisco Bay region remained the least affordable area of the state. Only 9% of households could afford to buy the median-priced home there, which cost $267,634 in May.

AFFORDABILITY INDEX FOR EXISTING HOMES Thirteen percent of Orange County households could afford to buy the median-priced home in the county in May, contrasted with 14% in April and 25% in May, 1988.

Median Monthly Selling Price Mortgage Payment May April May May April May 1989 1989 1988 1989 1989 1988 Orange County $247,397 $243,485 $199,019 $2,089 $2,002 $1,535 United States 93,100 92,900 89,600 786 764 691 California 201,930 200,784 163,578 1,705 1,651 1,262 S.F. Bay Area 267,634 261,520 196,817 2,260 2,151 1,518 Los Angeles 217,708 215,871 172,967 1,838 1,775 1,334 San Diego 175,585 176,057 142,256 1,483 1,448 1,097 Riverside/ 122,983 119,124 104,025 1,038 980 802 San Bernardino

Minimum Percent Annual Income Qualified May April May May April May 1989 1989 1988 1989 1989 1988 Orange County $83,561 $80,095 $61,409 13 14 25 United States 31,445 30,560 27,647 44 46 47 California 68,204 66,049 50,474 15 17 23 S.F. Bay Area 90,396 86,028 60,730 9 10 22 Los Angeles 73,533 71,012 53,371 13 14 22 San Diego 59,306 57,915 43,895 18 19 26 Riverside/ 41,539 39,186 32,098 29 32 39 San Bernardino

Source: California Assn. of Realtors


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