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.