Median Home Price Increases to $255,897

Only 13 of 100 Orange County families could afford to buy an average house in the county in July, the California Assn. of Realtors said Tuesday.

That house cost $255,897 in July, the trade association said, and a family needed a yearly income of $86,004 to afford it.

The monthly payments on such a house would be $2,150.

A year ago the county’s median home price was $214,227, and 21% of local families or households could afford it; last month it was $251,600, and 13% could afford it.

Orange County was by no means the least affordable housing market in the state. Housing prices have soared in most areas in the last few years.

In the San Francisco area, only 9% of families could afford a house with a median price of $269,982 in July. Only one in 10 Ventura County families could afford a median-priced house at $252,451. In Los Angeles, it was only 12%, and the median price was $224,456.

The survey includes only used houses. New homes are generally even more expensive. The association assumes a 20% down payment in its calculations.

The affordability crunch hurts businesses’ ability to recruit and retain employees, and some economists fret about the eventual impact of high housing prices on the state’s booming economy.

Across California, only 16% of families could afford the median-priced house, which cost $202,650 in July. A family needed an income of $68,108 to meet the monthly payments of $1,703 on such a home, the trade association calculated.

A year ago, 22% of families in the state could afford a house.

Still, lower mortgage rates have offset higher housing prices to some extent, the trade association said. The percentage of families who can afford a house has stabilized and didn’t change between July and June.

In Orange County, it has been at 13% since May.

Condominiums, by contrast, are in heavy demand because so few families can afford a single-family house. Condo prices are growing more rapidly beyond the means of California families. The median price soared statewide by nearly $8,000 during July, to $145,867.

That meant only 29% of families statewide could afford a condo, down from 30% in June.

Separate figures for condominiums in Orange County were unavailable.

AFFORDABILITY INDEX FOR RESALE HOMES

Thirteen percent of Orange County households could afford to buy the median-priced resale home in the county in July, unchanged since May and contrasted with 21% in July, 1988.

Median Monthly Selling Price Mortgage Payment July June July July June July 1989 1989 1988 1989 1989 1988 Orange County $255,897 $251,674 $214,227 $2,150 $2,145 $1,665 United States 96,400 93,400 90,700 810 796 705 California 202,650 200,445 174,388 1,703 1,708 1,355 S.F. Bay Area 269,982 268,903 214,016 2,268 2,292 1,663 Los Angeles 224,456 220,253 186,133 1,836 1,877 1,447 San Diego 175,794 177,736 150,000 1,477 1,515 1,166 Riverside/ 126,372 123,643 108,392 1,062 1,054 842 San Bernardino

Minimum Percent Annual Income Qualified July June July July June July 1989 1989 1988 1989 1989 1988 Orange County $86,004 $85,789 $66,699 13 13 21 United States 32,399 31,837 28,197 44 44 46 California 68,108 68,326 54,214 16 16 22 S.F.Bay Area 90,738 91,661 66,533 9 9 18 Los Angeles 75,437 75,078 57,865 12 12 20 San Diego 59,082 60,585 46,632 19 18 25 Riverside/ San Bernardino 42,472 42,146 33,697 29 29 37