The C.A.R. First-time Home Buyer index is fundamental gauge of how strong the housing market is in California. It measures the percent of households that can afford to purchase an entry-level home across the state. Based on historic data, first-time home buyers usually buy a home in the lower price range or 85 percent of the median California house price. For the first quarter of 2009, the statewide affordability rate hit 69 percent meaning more and more people can afford to purchase a home in the Golden State.
For the first quarter of 2009, the median price of an entry level California home dropped to a low $213,040. To qualify for a loan, you would only need a minimum household income of $38,090. To put it into perspective, California’s current median household income is $61,030. The entry level home price was 41 percent higher last year during this same period. If you have always wanted to live in California but felt you couldn’t afford to, you may want to take a second look.
As to be expected, some areas are more affordable than others. For example, the High Desert area west of Los Angeles is the most affordable in California where 83 percent of the first-time home buyers can purchase a home. Surprisingly the Central Coast area of San Luis Obispo County is still the least affordable in the California at 49 percent, while the Orange County region is at 56 percent. Typically, San Francisco region and the San Diego region have had the least affordability.
California’s has the largest housing market which is used as an indicator of the health of the rest of the nation. April’s 1.4 percent median price increase was welcome news bringing hopes of a near term recovery. Right now is one of those perfect alignments –extremely low interest rates coupled with high affordability/low housing prices – to make California home ownership a reality.
Author Andee Nast is free lance writer, California Realtor (License #01854926), and Real Estate Investor. You are welcome to contact Andee at andeen@charter.net or on her website http://www.andeeallen.com
Posted May 31st, 2009 by andeallen
