The Fed’s interest rate increase in December has been offset by rising wages and softening house prices in California, making the state slightly more affordable for homebuyers
The Fed’s interest rate increase in December has been offset by rising wages and softening house prices in California, making the state slightly more affordable for homebuyers.
The California Association of Realtors says 32% of California households could afford to buy the $496,620 median-priced home in the first quarter of 2017, up from 31% in the last quarter of 2016 but down from 34% in the first quarter of 2016.
To afford that median-priced home, an income of at least $102,050 would be needed to qualify for a 30-year mortgage at 4.36% with a 20% downpayment. The monthly $2,550 also includes insurance and taxes.
The mortgage rate compares to an effective composite rate of 3.91% in the fourth quarter of 2016 and 4.01% in the first quarter of 2016.
By county, Los Angeles, San Diego, Merced, San Joaquin, Tulare, El Dorado, Shasta, and Sutter all showed improved affordability in the first three months of 2017.
There was a decline in affordability in 26 counties while 7, including San Francisco, were unchanged.
San Francisco (13% of homes affordable), Santa Barbara (14%), and San Mateo (15%), counties were the least affordable areas in the state.
The California Association of Realtors says 32% of California households could afford to buy the $496,620 median-priced home in the first quarter of 2017, up from 31% in the last quarter of 2016 but down from 34% in the first quarter of 2016.
To afford that median-priced home, an income of at least $102,050 would be needed to qualify for a 30-year mortgage at 4.36% with a 20% downpayment. The monthly $2,550 also includes insurance and taxes.
The mortgage rate compares to an effective composite rate of 3.91% in the fourth quarter of 2016 and 4.01% in the first quarter of 2016.
By county, Los Angeles, San Diego, Merced, San Joaquin, Tulare, El Dorado, Shasta, and Sutter all showed improved affordability in the first three months of 2017.
There was a decline in affordability in 26 counties while 7, including San Francisco, were unchanged.
San Francisco (13% of homes affordable), Santa Barbara (14%), and San Mateo (15%), counties were the least affordable areas in the state.
