C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being in the state.
The minimum household income needed to purchase a median-priced home at $568,890 in California in August was $133,800, based on an average effective mortgage interest rate of 5.87 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $110,980 in August 2004, when the median price of a home was $473,520 and the prevailing interest rate was 5.83 percent.
The minimum household income needed to purchase a median-priced home at $220,000 in the U.S. in August 2005 was $51,740.
At 28 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 percent. The Santa Barbara region was the least affordable in the state at 6 percent.
C.A.R.'s September 2005 sales and median price report for the state and regions within the state will be released on Tuesday, Oct. 25.
Leading the Way...(R) in California real estate for 100 years, the California Association of REALTORS(R) (www.car.org) is one of the largest state trade organizations in the United States, with more than 180,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
C.A.R. HOUSING AFFORDABILITY INDEX (a)
Aug-05 Jul-05 Aug-04
California 14 16 18
California - Condos 21 22 27
United States 48 49 54
C.A.R. REGION
Central Valley 17 18 26
High Desert 28 30 42
Los Angeles 12 14 17
Monterey Region 9 9 12
Northern California 15 16 20
Northern Wine Country 7 7 13
Orange County 11 11 11
Palm Sprgs/Lwr Desert 11 11 13
Riverside/SBernardino n.a. 15 21
Sacramento 19 20 26
San Diego 9 9 10
San Francisco Bay Area 12 12 14
San Luis Obispo 10 10 14
Santa Barbara County 6 7 12
Santa Clara 18 18 23
Ventura 13 13 14
COUNTY
Alameda 11 11 15
Contra Costa 10 10 10
Fresno 18 21 27
Marin 11 11 14
Merced 10 11 21
Riverside n.a. 15 18
San Bernardino n.a. 19 28
San Francisco 9 9 11
San Joaquin 11 11 19
San Mateo 12 12 15
Santa Cruz 10 11 14
Sonoma 7 7 13
Stanislaus 16 17 28
(a) -- percentage of California households that can afford to purchase
a median-priced home
r -- revised
Source: California Association of REALTORS(R)
Median Prices By Region - Current Month vs. Year Ago
Aug-05 Jul-05 Aug-04
----------------------------------------------------------------------
Calif. (sf) $568,890 $540,900 $473,520 r
Calif. (condo) $433,040 $426,320 $370,700 r
C.A.R. REGION
Central Valley $363,720 $356,260 $289,360
High Desert $305,700 $298,950 $236,890
Los Angeles $564,340 $543,890 $455,590
Monterey Region $727,500 $729,250 $613,120
Monterey County $690,000 $698,000 $555,000
Santa Cruz County $783,000 $759,000 $639,000
Northern California $440,420 $418,630 $366,050
Northern Wine Country $640,700 $639,670 $505,790
Orange County $716,300 $706,820 $649,590
Palm Springs/Lower Desert $371,020 $371,390 $326,740
Riverside/San Bernardino NA $384,910 $310,120
Sacramento $394,450 $387,810 $328,410
San Diego $616,870 $616,050 $579,040
San Francisco Bay $730,360 $724,890 $644,920
San Luis Obispo $566,510 $559,900 $454,720
Santa Barbara County $819,850 $654,170 $541,670 r
Santa Barbara South Coast $1,301,000 $1,340,000 r $997,300 r
North Santa Barbara County $462,880 $462,690 $411,700
Santa Clara $760,000 $750,000 $625,000
Ventura $685,680 $694,690 $626,730
na - not available
r - revised
Source: California Association of REALTORS(R)
Today's release also is available on C.A.R. Online at http://www.car.org/index.php?id=MzU1NDk.
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