CAR: Affordability Jumps for First-Time Buyers

The percentage of first-time buyers in California able to afford an entry-level home rose to 48% in the second quarter, compared with 24% a year earlier, according to the California Association of Realtors. The minimum household income needed to purchase an entry-level home at $329,120 in California stood at $62,870 in the second quarter, based on an adjustable interest rate of 5.69% and assuming a 10% downpayment, according to CAR's First Time Buyer Housing Affordability Index. (First-time buyers typically purchase a home equal to 85% of the prevailing median price.) The monthly payment, including taxes and insurance, stood at $2,100. At 68%, the High Desert region was the most affordable area in the state, and the San Francisco Bay area was the least affordable, at 32%, the association reported. CAR can be found on the Web at http://www.car.org.