Thursday, February 09, 2006
Riverside County home affordability slips to 16 percent
Here are the latest housing affordability rates for California ...CAR reports December's Housing Affordability Index at 14 percent statewideThursday, Feb. 9, 2006California Association of RealtorsThe percentage of households in Riverside County able to afford a median-priced home stood at 16 percent in December, compared with 17 percent for the same period a year ago, according to a report released Thursday by the California Association of Realtors (CAR).Statewide, the affordability index dropped to just 14 percent, compared with 19 percent a year earlier, the association reported.CAR’s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. CAR 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 $548,430 in California in December was $134,200, based on an average effective mortgage interest rate of 6.33 percent and assuming a 20 percent downpayment.At 24 percent, the High Desert region was the most affordable CAR region in the state, followed by the Sacramento region at 19 percent. Santa Barbara County was the least-affordable region in the state at 6 percent, followed by the Northern Wine Country region at 7 percent.Affordability was also low in Monterey (9 percent), San Diego (9 percent), Orange County (10 percent), Palm Springs/Lower Desert (10 percent), and San Luis Obispo (10 percent) regions, the association also reported.Home prices increased from $960,000 to $1.3 million (35.4 percent) in the Santa Barbara South Coast area from December 2004 to December 2005, the association reported.Prices increased 31.1 percent in the High Desert area, 26.2 percent in the Santa Barbara County area, and 20.6 percent in the Riverside/San Bernardino area in that time, according to the report. Price increases were slightest in the North Santa Barbara County area (4 percent), San Diego area (4.6 percent), San Francisco Bay Area (8.2 percent), and Palm Springs/Lower Desert area (8.2 percent) from December 2004 to December 2005.CAR reported that it will begin reporting the Housing Affordability Index on a quarterly basis – rather than a monthly basis – this year. The first quarter HAI will be released May 4. The California Association of Realtors has about 185,000 members.For a breakdown by county and region, click here.Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula
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