Realtor Group Sees Gap in Incomes, Home Prices
From Associated Press
California households earning the median income of $54,140 need more than double that income to qualify for a mortgage on a home selling for the statewide median price of $545,910, a real estate trade group said.
Home buyers in Southern California, where the median income was $52,580, were $74,240 short of qualifying for a home selling at the region’s median price of $541,110, according to the California Assn. of Realtors’ home buyer income gap index for the third quarter of 2005.
The group calculated the income needed to finance the purchase of a single-family home, assuming a 20% down payment and a monthly payment for principal, interest, taxes and insurance that is no more than 30% of a household’s income.
