Fewer able to afford homes
There was mixed news on the California home front: The percentage of households able to afford a median-priced home in November was unchanged, at 25%, from October. But that was down from 30% a year ago, according to the California Assn. of Realtors.
To purchase a median-priced home of $386,760 in November required a minimum household income of $90,800, based on a 20% down payment on a 30-year fixed-rate mortgage at 5.85%. Only 25% of households in the state were at or above that income. It took a minimum income of $78,663 to be able to afford the median home price of $328,440 a year ago, when the prevailing interest rate was 6.08%.
The minimum household income needed to purchase a median-priced home at $170,900 in the United States in November 2003 was $40,120.