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 June 21, 2009

Affordability for Entry-Level Buyers Shows Increase
As of mid-May, the California Association of Realtors reports that the housing affordability index for first-time buyers reached sixty-nine percent, compared to forty-six percent in the first quarter of 2008.
In the first quarter of this year, the median price for a home in the state of California stood at $213,040.

The estimated monthly mortgage payment which would include taxes and insurance came in at $1,270 at the conclusion of the first quarter of this year.

Assuming a ten percent down payment, $38,090 was the minimum household income required to be able to purchase an entry-level home in the state of California at the conclusion of the first quarter of this year. This qualifying level of income is forty-one percent lower than in 2008. At that time household minimum income stood at $65,030 to properly qualify for a mortgage. Recent decreases in home prices coupled with better interest rates have helped lower these requirements.