Housing affordability in California drops as prices increase
California homes are getting less affordable as property values rise, a real estate group says, offsetting the benefit to home shoppers from low mortgage interest rates.
The California Assn. of Realtors estimated that 49% of homebuyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter.
The group estimated that those buying a house needed to earn a minimum annual income of $65,810 to qualify for the purchase of a median-priced house in the state, which the group estimated at $339,860 at the end of the third quarter.
A monthly payment for this home on a fixed-rate 30-year mortgage with a 20% down payment would be $1,650 including taxes and insurance. The group assumed a 3.72% interest rate.
Most counties in Southern California experienced lower affordability. Affordability in Los Angeles fell to 42% of buyers from 49% of buyers in the previous quarter.
Your guide to our new economic reality.
Get our free business newsletter for insights and tips for getting by.
You may occasionally receive promotional content from the Los Angeles Times.