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With the economy still in a slump and unemployment figures up, it's no surprise that buying a home is beyond the reach of many. While median home prices continue to move upwards, it's going to be harder than ever for first-time homebuyers to grab the American dream this year.
The percentage of households in California able to afford a median-priced home decreased by 6 percent in October compared to a year ago, according to the latest report released by the California Association of Realtors.
The October 2002 Housing Affordability Index stood at 30 percent, down six points from a revised 36 percent in October 2001, according to the association. The October affordability index increased one point from a revised 29 percent in September 2002.
The minimum household income needed to purchase a median-priced home at $322,730 in California in October was $77,700, based on a typical 30-year, fixed-rate mortgage at 6.14 percent and assuming a 20 percent down payment.
At 65 percent, the High Desert was the most affordable region in the state. Santa Clara County showed a 27 percent affordability index for October 2002 compared to 30 percent one year ago.
The association's monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California and also reports housing affordability indexes for regions and select counties within the state.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.
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