- Seventeen percent of California households could afford to purchase
the $814,280 median-priced home in
the first quarter of 2024, up from 15 percent in fourth-quarter
2023 and down from 20 percent in first-quarter 2023.
- A minimum annual income of $208,400 was needed to make monthly payments of
$5,210, including principal, interest
and taxes on a 30-year fixed-rate mortgage at a 6.86 percent
interest rate.
- Twenty-four percent of home buyers were able to purchase the
$655,000 median-priced condo or
townhome. A minimum annual income of $167,600 was required to make a monthly payment
of $4,190.
LOS
ANGELES, May 9, 2024 /PRNewswire/ -- A mild retreat
in mortgage interest rates and home prices made it easier for more
Californians to purchase a home during the first quarter of 2024,
the CALIFORNIA ASSOCIATION OF
REALTORS® (C.A.R.) said today.
Infographic:
https://www.car.org/Global/Infographics/HAI-2024-Q1
Seventeen percent of the state's homebuyers could afford to
purchase a median-priced, existing single-family home in
California in first-quarter 2024,
up from 15 percent in the fourth quarter of 2023 and down from 20
percent in the first quarter of 2023, according to C.A.R.'s
Traditional Housing Affordability Index (HAI). The first-quarter
2024 figure is less than less than a third of the affordability
index peak of 56 percent in the first quarter of 2012. With the
U.S. economy performing better than expected, the Federal Reserve
is unlikely to cut interest rates until at least the summer,
hindering any significant improvement in affordability in the
coming months.
C.A.R.'s HAI measures the percentage of all households that can
afford to purchase a median-priced, single-family home in
California. C.A.R. also reports
affordability indices for regions and select counties within the
state. The index is considered the most fundamental measure of
housing well-being for home buyers in the state.
A minimum annual income of $208,400 was needed to qualify for the purchase
of a $814,280 statewide
median-priced, existing single-family home in the first quarter of
2024. The monthly payment, including taxes and insurance (PITI) on
a 30-year, fixed-rate loan, would be $5,210, assuming a 20 percent down payment and an
effective composite interest rate of 6.86 percent.
The effective composite interest rate was 7.39 percent in
fourth-quarter 2023 and 6.48 percent in first-quarter 2023. With
recent economic reports showing a lack of progress on the inflation
battle in recent months, the Federal Reserve's plan to cut rates
this year has been further delayed, and a downward adjustment in
the fed funds rate may not take place until late summer.
The share of California
households that could afford a typical condo/townhome in
first-quarter 2024 rose to 24 percent, up from 22 percent recorded
in the previous quarter but fell from the 27 percent recorded in
the first quarter of 2023. An annual income of $167,600 was required to make the monthly payment
of $4,190 on the $655,000 median-priced condo/townhome in the
first quarter of 2024.
Compared with California,
nearly four in 10 of the nation's households could afford to
purchase a $389,400 median-priced
home, which required a minimum annual income of $99,600 to make monthly payments of $2,490. Nationwide affordability was down from 40
percent a year ago.
Key points from the first-quarter 2024 Housing Affordability
report include:
- When compared to the previous quarter, housing affordability
declined in four counties and remained unchanged in ten.
Thirty-nine counties showed quarter-to-quarter improvements in
affordability due to lower interest rates and more modest price
declines, compared to other counties during the same time period.
When compared to a year ago, six counties registered an improvement
in affordability, while 46 counties throughout the state posted a
decline on a year-over-year basis, and only one remained
unchanged.
- Lassen (51 percent) remained
the most affordable county in California. Tehama (39 percent), followed by Plumas (37 percent), Shasta (37 percent) and Tuolumne (36 percent) trailed behind and were
the only five counties in California to record an affordability index
greater than 35 percent. Of all counties in California, Lassen continued to have the lowest minimum
qualifying income ($66,000) to
purchase a median-priced home in first-quarter 2024.
- Mono (4 percent), San Luis Obispo (10 percent) and a
four-way-tie at 11 percent between Orange, San
Diego, Monterey, and
Santa Barbara, were the least
affordable counties in California,
with each of them requiring a minimum income of at least
$222,000 to purchase a median-priced
home in the respective counties. San
Mateo continued to require the highest minimum qualifying
annual income ($511,600) to buy a
median-priced home in the first quarter of 2024 and was the only
county in the state requiring a minimum qualifying income over
$500,000. Santa Clara County came in second, requiring a
minimum income of $470,800, followed
by Marin ($427,200).
- Housing affordability declined the most on a year-over-year
basis in Siskiyou, falling nine
percentage points from the previous quarter. Plumas and Mendocino recorded the second biggest drop in
affordability, moving five percentage points below the same quarter
of last year. Despite a growth in household income, higher home
prices and elevated mortgage rates continue to keep housing
affordability near its all-time low across most counties.
See C.A.R.'s historical housing affordability data.
See first-time buyer housing affordability data.
Leading the way…® in California
real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS®
(www.car.org) is one of the largest state trade organizations in
the United States with more than
180,000 members dedicated to the advancement of professionalism in
real estate. C.A.R. is headquartered in Los Angeles.
CALIFORNIA
ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
First quarter 2024
1st Qtr.
2024
|
C.A.R. Traditional
Housing Affordability Index
|
STATE/REGION/COUNTY
|
1st Qtr.
2024
|
4th Qtr.
2023
|
|
1st.
Qtr.
2023
|
|
Median
Home
Price
|
Monthly
Payment
Including
Taxes &
Insurance
|
Minimum
Qualifying
Income
|
Calif. Single-family
homes
|
17
|
15
|
|
20
|
r
|
$814,280
|
$5,210
|
$208,400
|
Calif.
Condo/Townhomes
|
24
|
22
|
|
27
|
r
|
$655,000
|
$4,190
|
$167,600
|
Los Angeles Metro
Area
|
15
|
14
|
|
19
|
|
$785,000
|
$5,020
|
$200,800
|
Inland
Empire
|
21
|
20
|
|
24
|
|
$579,940
|
$3,710
|
$148,400
|
San Francisco Bay
Area
|
20
|
19
|
|
21
|
|
$1,255,000
|
$8,030
|
$321,200
|
United
States
|
37
|
35
|
|
40
|
|
$389,400
|
$2,490
|
$99,600
|
|
|
|
|
|
|
|
|
|
San Francisco Bay
Area
|
|
|
|
|
|
|
|
|
Alameda
|
16
|
16
|
|
18
|
|
$1,292,500
|
$8,270
|
$330,800
|
Contra Costa
|
25
|
23
|
|
29
|
|
$825,000
|
$5,280
|
$211,200
|
Marin
|
18
|
16
|
|
20
|
|
$1,670,000
|
$10,680
|
$427,200
|
Napa
|
18
|
16
|
|
20
|
|
$890,000
|
$5,690
|
$227,600
|
San
Francisco
|
20
|
20
|
|
21
|
|
$1,650,000
|
$10,550
|
$422,000
|
San Mateo
|
17
|
17
|
|
19
|
|
$2,000,000
|
$12,790
|
$511,600
|
Santa Clara
|
18
|
18
|
|
21
|
|
$1,840,000
|
$11,770
|
$470,800
|
Solano
|
26
|
25
|
|
28
|
|
$580,000
|
$3,710
|
$148,400
|
Sonoma
|
16
|
15
|
|
18
|
|
$840,000
|
$5,370
|
$214,800
|
Southern
California
|
|
|
|
|
|
|
|
|
Imperial
|
30
|
27
|
|
32
|
|
$360,000
|
$2,300
|
$92,000
|
Los Angeles
|
14
|
11
|
|
17
|
|
$822,950
|
$5,260
|
$210,400
|
Orange
|
11
|
11
|
|
12
|
|
$1,365,000
|
$8,730
|
$349,200
|
Riverside
|
20
|
19
|
|
22
|
|
$630,000
|
$4,030
|
$161,200
|
San
Bernardino
|
27
|
24
|
|
30
|
|
$487,270
|
$3,120
|
$124,800
|
San Diego
|
11
|
11
|
|
15
|
|
$981,000
|
$6,280
|
$251,200
|
Ventura
|
15
|
13
|
|
17
|
|
$889,000
|
$5,690
|
$227,600
|
Central
Coast
|
|
|
|
|
|
|
|
|
Monterey
|
11
|
8
|
|
12
|
|
$867,500
|
$5,550
|
$222,000
|
San Luis
Obispo
|
10
|
8
|
|
12
|
|
$895,000
|
$5,730
|
$229,200
|
Santa
Barbara
|
11
|
10
|
|
15
|
|
$1,050,000
|
$6,720
|
$268,800
|
Santa Cruz
|
13
|
13
|
|
14
|
|
$1,250,000
|
$8,000
|
$320,000
|
Central
Valley
|
|
|
|
|
|
|
|
|
Fresno
|
30
|
28
|
|
32
|
|
$410,000
|
$2,620
|
$104,800
|
Glenn
|
34
|
30
|
|
32
|
|
$349,000
|
$2,230
|
$89,200
|
Kern
|
31
|
28
|
|
33
|
|
$380,000
|
$2,430
|
$97,200
|
Kings
|
34
|
29
|
|
33
|
|
$347,450
|
$2,220
|
$88,800
|
Madera
|
30
|
29
|
|
34
|
|
$430,000
|
$2,750
|
$110,000
|
Merced
|
29
|
29
|
|
32
|
|
$391,920
|
$2,510
|
$100,400
|
Placer
|
30
|
28
|
|
31
|
|
$646,120
|
$4,130
|
$165,200
|
Sacramento
|
26
|
23
|
|
29
|
|
$533,910
|
$3,420
|
$136,800
|
San Benito
|
21
|
15
|
|
23
|
|
$770,500
|
$4,930
|
$197,200
|
San Joaquin
|
26
|
22
|
|
27
|
|
$535,000
|
$3,420
|
$136,800
|
Stanislaus
|
28
|
23
|
|
30
|
|
$458,250
|
$2,930
|
$117,200
|
Tulare
|
33
|
31
|
|
37
|
|
$363,850
|
$2,330
|
$93,200
|
Far
North
|
|
|
|
|
|
|
|
|
Butte
|
29
|
29
|
|
32
|
|
$435,000
|
$2,780
|
$111,200
|
Lassen
|
51
|
49
|
|
53
|
|
$258,500
|
$1,650
|
$66,000
|
Plumas
|
37
|
33
|
|
42
|
|
$370,950
|
$2,370
|
$94,800
|
Shasta
|
37
|
36
|
|
39
|
|
$370,500
|
$2,370
|
$94,800
|
Siskiyou
|
32
|
32
|
|
41
|
|
$330,000
|
$2,110
|
$84,400
|
Tehama
|
39
|
40
|
|
40
|
|
$320,000
|
$2,050
|
$82,000
|
Trinity
|
26
|
28
|
|
21
|
|
$325,000
|
$2,080
|
$83,200
|
Other Calif.
Counties
|
|
|
|
|
|
|
|
|
Amador
|
30
|
31
|
|
33
|
|
$448,500
|
$2,870
|
$114,800
|
Calaveras
|
33
|
31
|
|
32
|
|
$450,000
|
$2,880
|
$115,200
|
Del Norte
|
34
|
26
|
|
32
|
|
$350,000
|
$2,240
|
$89,600
|
El Dorado
|
25
|
23
|
|
28
|
|
$660,000
|
$4,220
|
$168,800
|
Humboldt
|
25
|
24
|
|
26
|
|
$422,450
|
$2,700
|
$108,000
|
Lake
|
33
|
28
|
|
31
|
|
$320,000
|
$2,050
|
$82,000
|
Mariposa
|
23
|
18
|
|
25
|
|
$415,000
|
$2,650
|
$106,000
|
Mendocino
|
21
|
18
|
|
26
|
|
$472,000
|
$3,020
|
$120,800
|
Mono
|
4
|
5
|
|
7
|
|
$1,250,000
|
$8,000
|
$320,000
|
Nevada
|
27
|
24
|
|
29
|
|
$530,000
|
$3,390
|
$135,600
|
Sutter
|
32
|
31
|
|
36
|
|
$417,000
|
$2,670
|
$106,800
|
Tuolumne
|
36
|
32
|
|
36
|
|
$397,500
|
$2,540
|
$101,600
|
Yolo
|
24
|
22
|
|
28
|
|
$619,200
|
$3,960
|
$158,400
|
Yuba
|
26
|
24
|
|
28
|
|
$437,290
|
$2,800
|
$112,000
|
r = revised
Traditional Housing Affordability Indices (HAI) were calculated
based on the following effective composite interest rates: 6.86%
(1Qtr. 2024), 7.39% (4Qtr. 2023) and 6.48% (1Qtr. 2023).
View original content to download
multimedia:https://www.prnewswire.com/news-releases/improvement-in-home-prices-interest-rates-lifts-california-housing-affordability-during-first-quarter-2024-car-reports-302140618.html
SOURCE CALIFORNIA ASSOCIATION
OF REALTORS® (C.A.R.)