The percentage of Californians who could afford to purchase a median-priced single-family home in the state rose to 53% in the first quarter, up from 50% in the fourth quarter of last year, according to the California Association of Realtors.
However, CAR president Beth Peerce warned that the cost of homeownership in the state will rise later this year as higher conforming loan limits for high-cost areas are rolled back. In addition, if Fannie Mae and Freddie Mac are eliminated, affordable mortgage products such as the 30-year fixed-rate loan will be more difficult to obtain, she warned.
The area where homes are most affordable is in the Central Valley, where Merced County has a Housing Affordability Index of 76%, followed by Tulare County at 72% and Kings County and Sacramento County at 71%.
Riverside County, in Southern California, also had a 76% index and Solano County, in the Bay Area, had a 74% index.
The Bay Area was where the least affordable properties were located. The index for San Francisco was 25%; while for Marin County it was 27% and San Mateo County it was 28%.
The median price for a single-family home for the state is $278,430. Marin had the highest median at $715,810; CAR said the qualifying income needed to purchase a home there was $154,000.
