CAR Reports Affordability for First-Time Buyers

The percentage of first-time buyers in California able to afford an entry-level home stood at 24% in the third quarter of 2007, unchanged from the level recorded a year earlier, according to the California Association of Realtors.The minimum household income needed to purchase an entry-level home at $482,910 in California was $99,590 in the third quarter, based on an adjustable interest rate of 6.56% 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 $3,320. At 48%, the High Desert region was the most affordable region in the state, and Santa Barbara was the least affordable, at 11%. CAR can be found on the Web at http://www.car.org.