Price of houses declines nationally

Californians struggling to afford a house may find it hard to believe that U.S. housing affordability increased in the last three months of 2003, reversing two quarters of declines, as the cost of homes dipped by more than $5,000, according to the National Assn. of Realtors.

Its Housing Affordability Index rose to 139.2 from 136.6 in the previous quarter. A reading of 100 means a household with the national median income makes exactly enough to pay for a median-priced home. A higher reading indicates houses are more affordable.

The price for an existing single-family home fell to $171,600 in the fourth quarter from $176,900 in the third quarter. In California, the December median price of $404,520 for an existing, single-family home required a household income of $94,730 to afford a 30-year fixed mortgage at 5.82%, the California Assn. of Realtors said.