Q1 California Housing Affordability Improves

May 14, 2019

Thirty-two percent of California households were able to afford the purchase of a $545,820 median-priced home during the first quarter, according to data from the California Association of Realtors (CAR). This level is from 28 percent in the fourth quarter 2018 and up from 31 percent a year ago.

CAR noted that households would need a minimum annual income of $114,860 o make monthly payments of $2,870 on the state’s median-priced home, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.62 percent interest rate. For those buying a median-priced condo or townhome, 41 percent of California home buyers were able to purchase the $450,000 property, and would need an annual income of $94,690 to make a monthly payment of $2,370 on that type of property.

Compared with California, 57 percent of the nation's households could afford to purchase a $254,800 median-priced home, which required a minimum annual income of $53,620 to make monthly payments of $1,340, CAR added.

About the author

Phil Hall

Link copied

Published

May 14, 2019

Analysis and Data

Mortgage Industry Despairs Over Positive Jobs Report

Leading to 'crushed' expectations of another significant rate cut

The September jobs report came back with flying colors, adding far more jobs than Wall Street economists projected while the unemployment rate ticked down, leading to what can only be called a crushing defeat for mortgage professionals. In response, the average rate for the ...

People On The Move

Pennymac Shakes Up Capital Markets Team

William Chang, Pennymac’s long-time capital markets leader, to "pursue other interests in the mortgage banking industry."

PennyMac Financial Services, Inc. and PennyMac Mortgage Investment Trust announced Thursday that William Chang will step down from his roles as Senior Managing Director and Chief Capital Markets Officer at PFSI, and Senior Managing Director and Chief Investment Officer at PM...