CAR: Affordability Rises for First-Time Buyers

The percentage of first-time buyers in California able to afford an entry-level home stood at 44% in the first quarter, compared with 26% for the same period a year ago, according to the California Association of Realtors. The minimum household income needed to purchase an entry-level home at $356,350 in California was $67,830 in the first quarter, based on an adjustable interest rate of 5.65% 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 $2,260. At 64%, Sacramento County and the High Desert region were the most affordable areas in the state, and Monterey was the least affordable, at 29%. CAR can be found on the Web at http://www.car.org.