Fewer in state can afford to buy home

Despite historically low interest rates, the continuing surge in home prices meant fewer Californians could afford a median-priced home in July.

The California Assn. of Realtors reported 26% of the state’s households were able to afford the $383,320 median-priced home, down 2% from last year.

The trade group’s July Housing Affordability Index declined by 1 percentage point from June, when it stood at 27 points.

To purchase the $383,320 median-priced home, a household would need a minimum annual income of $86,440, based on a typical 30-year, fixed-rate mortgage at 5.39% with a 20% down payment. In July last year, a household income of $80,260 was needed to afford the median priced home of $321,900, and the prevailing interest rate was 6.55%.

The state’s most affordable region was the High Desert, followed by Sacramento. The Santa Barbara region was the least affordable.