Slightly More Families Can Afford County Homes

The number of county residents who can afford a single-family resale home in November increased slightly from the October level, the California Assn. of Realtors reported Monday.

Countywide, 15% of county households earned the income needed to qualify for a mortgage loan to buy the median-priced single-family resale home, which sold for $242,700 in November. The figure for had remained unchanged at 14% from August through October.

Statewide, 19% of households could afford the average single-family resale home, which cost $195,400 in November.

Assuming a 20% down payment, the average California household needed an annual income of $64,416 to qualify for the monthly mortgage payment of $1,610.

Affordability in California has increased gradually since May, when months of skyrocketing prices had forced many potential buyers out of the market and the index hit an all-time low of 15%.

“Declining mortgage interest rates are a good signal for home buyers who were waiting on the sidelines last spring, when interest rates were headed upward,” said Jim Antt, president of the association.

“However, slightly higher home prices in some areas have canceled out any savings buyers might have enjoyed from today’s lower rates,” Antt said.

Affordability increased in two other regions of the state--Sacramento (36%) and Riverside/San Bernardino (30%)--by 1% each.

In the state’s other major urban areas, the rates were unchanged: Los Angeles (14%), San Diego (19%), San Francisco Bay (11%) and Ventura (11%).

Affordability for condominiums was also unchanged in November, with 31% of the state’s households able to afford the median-priced resale condominium, which sold for $144,643.