The California Association of Realtors reports that there was a modest – very modest – improvement in Bay Area housing affordability during the July-September in 2014.
The Traditional Housing Affordability Index stated that 30 percent of homebuyers could afford to buy a median-price, existing single-family home in California. The index measures the percentage of all households that can afford to purchase a median-price, single-family home in California.
California home buyers would need to earn a minimum annual income of $94,960 to qualify for the purchase of a $467,700 statewide median-price, existing single-family home in the third quarter of 2014. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,370, which assumes a 20 percent down payment and an effective composite interest rate of 4.23 percent.
According to the report, lower interest rates and smaller home price gains were responsible for the slight improvement