Home affordability within San Diego County throughout the second quarter of this year increased to fifty nine percent; up from forty six percent just last year. In 2007, the percentage stood at just twenty three percent.
Throughout the past year, first time buyers have benefited mainly from lower-priced foreclosure properties. These sales made up more than 50% of total resales.
The California Association of Realtors classifies a first time home as one which is priced at eighty-five percent of the current median price. The affordability level percentage is based upon the percentage of households which meet qualifying income levels.
For San Diego County, current figures show the median price of a home at $295,000. The qualifying income level to purchase that home stands at $52,550; resulting in a monthly payment of $1,750. This amount includes principal, interest insurance and taxes. Approximately sixty percent of County households possess the income needed to buy such a home.
In 2008, the typical starter home was priced near $370,000. This required an income of just over $68,000, and the resulting monthly payment was approximately $2,270.
Inventory of available homes has been shrinking. Additional inventory of regular sales (non-distressed-foreclosures, or short-sale) would help the overall market on its recovery.
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