First Quarter Housing Affordability for 2012

California housing affordability continues to rise in the first quarter of 2012
LOS ANGELES (May 14) – Housing affordability in California set a new record high in first quarter 2012 rising to 56 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. The increase can be attributed to record-low interest rates and stabilization in home prices.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 56 percent in the first quarter of 2012, up from 55 percent in fourth-quarter 2011 and from 53 percent in first quarter 2011, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The index was the highest since C.A.R. began tracking this statistic in 1988.
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.
Home buyers needed to earn a minimum annual income of $55,688* to qualify for the purchase of a $276,040 statewide median-priced, existing single-family home in the first quarter of 2012. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,392, assuming a 20 percent down payment and an effective composite interest rate of 4.16 percent. The effective composite interest rate in fourth-quarter 2011 was 4.30 percent and 4.90 percent in the first quarter of 2011.
In the San Francisco Bay Area, housing affordability rose or remained stable in all counties except Contra Costa County, where affordability declined by one percentage point. At 78 percent, San Bernardino County was the most affordable, while San Francisco County was the least affordable, with only 29 percent of households able to purchase the county’s median-priced home.

*Income is based on information from the fourth quarter 2011.
Visit http://www.car.org/marketdata/data/haitraditional/ to see C.A.R.’s historical housing affordability data. For first-time buyer housing affordability data, visit http://www.car.org/marketdata/data/ftbhai/.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 155,000 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

STATE/REGION/COUNTY	Q1 2012	Q4 2011		Q1 2011
California Single-family home	56	55		53
California Condo/townhome	64	63		60
Los Angeles Metropolitan Area	56	56		53
Inland Empire	71	71		68
San Francisco Bay Area	45	42		39
United States	71	70		69
San Francisco Bay Area
Alameda	45	39		35
Contra-Costa (Central County)	36	37		30
Marin	32	29		27
Napa	50	50		48
San Francisco	29	26		25
San Mateo	33	29		30
Santa Clara	42	40		38
Solano	77	76		74
Sonoma	51	51		47
Southern California
Los Angeles	51	48		46
Orange County	39	38		33
Riverside County	66	66		63
San Bernardino	78	78		76
San Diego	46	46	r	40
Ventura	50	49		44
Central Coast
Monterey	54	56		58
San Luis Obispo	41	41		40
Santa Barbara	46	41		37
Santa Cruz	35	37		34
Central Valley
Fresno	72	71	r	70
Kings County	74	75		71
Madera	77	75		68
Merced	77	77		76
Placer County	67	67		64
Sacramento	74	74		71
Tulare	75	73		72

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index

State/Region/County	Index	Median Home Price	Monthly Payment Including Taxes and Insurance	Minimum Qualifying Annual Income
California Single-family (SAAR)	56	$276,040	$1,392	$55,688
California condo/townhome	64	$223,870	$1,129	$45,163
Los Angeles Metropolitan Area	56	$266,580	$1,344	$53,780
Inland Empire	71	$174,330	$879	$35,169
San Francisco Bay Area	45	$447,970	$2,259	$90,373
United States	71	$158,100	$797	$31,895
S.F. Bay Area
Alameda	45	$408,680	$2,061	$82,447
Contra-Costa (Central County)	36	$537,440	$2,711	$108,423
Marin	32	$694,060	$3,500	$140,019
Napa	50	$348,720	$1,759	$70,351
San Francisco	29	$607,230	$3,063	$122,502
San Mateo	33	$620,000	$3,127	$125,078
Santa Clara	42	$535,500	$2,701	$108,031
Solano	77	$186,910	$943	$37,707
Sonoma	51	$323,370	$1,631	$65,236
Southern California
Los Angeles	51	$281,390	$1,419	$56,767
Orange County	39	$484,860	$2,445	$97,815
Riverside County	66	$203,630	$1,027	$41,080
San Bernardino	78	$131,400	$663	$26,509
San Diego	46	$359,520	$1,813	$72,529
Ventura	50	$398,620	$2,010	$80,417
Central Coast
Monterey	54	$289,000	$1,458	$58,303
San Luis Obispo	41	$368,750	$1,860	$74,391
Santa Barbara	46	$347,210	$1,751	$70,046
Santa Cruz	35	$475,000	$2,396	$95,826
Central Valley
Fresno	72	$134,230	$677	$27,079
Kings County	74	$143,910	$726	$29,032
Madera	77	$111,820	$564	$22,558
Merced	77	$115,430	$582	$23,287
Placer County	67	$259,800	$1,310	$52,412
Sacramento	74	$164,930	$832	$33,273
Tulare	75	$119,330	$602	$24,074