C.A.R. Reports Entry-level Housing Affordability at 24%

RISMEDIA, Dec. 3, 2007-The percentage of households that could afford to buy an entry-level home in California stood at 24% in the third quarter of 2007, unchanged from the same period a year ago, according to a report released today by the California Association of Realtors® (C.A.R.).

C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at $482,910 in California in the third quarter of 2007 was $99,590, based on an adjustable interest rate of 6.56% and assuming a 10% down payment. First-time buyers typically purchase a home equal to 85% of the prevailing median price. The monthly payment including taxes and insurance was $3,320 for the third quarter of 2007.

At 48%, the High Desert region was the most affordable in the state, followed by the Sacramento region at 46%. Santa Barbara was the least affordable region in the state at 11%, followed by the Monterey region at 16%.

For more information, visit www.car.org.