A report published by the National Association of Home Builders reported that almost forty-five percent of homes sold in the fourth quarter of last year were affordable to families earning the county's median income of $72,100.
The highest index rating San Diego County has ever reached was 48.2% which was in the first quarter of 1994, which was in the depths of the last recession. Recent ratings were 38.7% in the third quarter of 2008 and 14.3% in the fourth quarter of 2007.
Across the nation the index increased more than sixty-two percent, up from just over fifty-six percent in the third quarter of last year, and over forty-six percent at the end of 2007.
The index is calculated on the assumption that the buyer puts down 10%, with a remaining 28% of their household income set aside to go toward principal, interest, insurance and taxes.
A La Jolla-based firm reported that the median price for our six-county region in Southern California continued to fall. Current price is at $250,000, a decrease of 39.8% from $415,000 in January of 2008. San Diego's median price has sunk below $300,000 for the first time in the past 7 years. The area's median price of $280,000 is down 34.7% from just one year ago. Analysts report that the continued decline in prices is largely due to the ongoing sales of foreclosed homes. Sales of foreclosed homes accounted for a staggering 55% of all resale condos and homes in the County for the month of January.
Buyers continue to look for bargains, which is the driving force of increased sales volume. There were more than fifteen thousand home sales recorded throughout the region, up 52.5% over 2008, and 2,459 in the County, an increase of 34.7%.
Buyers are also reaping the benefits of low interest rates.
San Diego County is currently the 26th least affordable of 222 metropolitan areas studied. Figures were based on a median income level of $72,100 and a median home price of $295,000.
The least-affordable metropolitan area of the 222 areas studied is New York. In this area, a mere 13.9% of all homes sold were affordable to a median income of $63,000.
The CEO of the San Diego County Building Industry Association, Borre Winckel, states that the affordability ranking of the area remains too high for many households in the County who wish to become homeowners. He continues by stating that this reflects a lag between the median income and the overall ability for people to afford a house which costs $295,000.
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