Homes: Most affordable in 2 decades - CNN Money
According to several recent studies, homes are more affordable
nationwide than they have been in many years, enabling many buyers who previously might have been priced out of the
market to become homeowners.
KEEP THIS IN MIND
• Nearly 73 percent of all homes sold in the U.S. during the first three months of 2009 were considered affordable,
according to a quarterly market analysis by the National Association of Homebuilders and Wells Fargo Bank. That was the
highest percentage ever reported by the 18-year-old Housing Opportunity Index.
• According to the Index, a home is deemed affordable if a family making the median national income of $64,000 is able to
purchase the property and devote no more than 28 percent of their income toward housing costs.
• The percentage of households that could afford to buy an entry-level home in California stood at 69 percent in the first
quarter of 2009, compared with 46 percent for the same period a year ago, according to the CALIFORNIA
ASSOCIATION OF REALTORS®’(C.A.R.) First-time Buyer Housing Affordability Index (FTB-HAI). The FTB-HAI
measures the percentage of households that can afford to purchase an entry-level home in California.
• The minimum household income needed to purchase an entry-level home at $213,040 in California in the first quarter of
2009 was $38,090, based on an adjustable interest rate of 4.96 percent and assuming a 10 percent down payment. First-
time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including
taxes and insurance was $1,270 for the first quarter of 2009.
• At $38,090, the minimum qualifying income was 42 percent lower than a year earlier when
households needed $65,030 to qualify for a loan on an entry-level home. Recent decreases in
home prices and mortgage rates have brought affordability into better alignment with income levels of the typical
California household, where the median household income is $61,030.
To read the full story, please click here:
http://money.cnn.com/2009/05/18/real_estate/most_affordable_cities/index.htm?postversion=2009051815
According to several recent studies, homes are more affordable
nationwide than they have been in many years, enabling many buyers who previously might have been priced out of the
market to become homeowners.
KEEP THIS IN MIND
• Nearly 73 percent of all homes sold in the U.S. during the first three months of 2009 were considered affordable,
according to a quarterly market analysis by the National Association of Homebuilders and Wells Fargo Bank. That was the
highest percentage ever reported by the 18-year-old Housing Opportunity Index.
• According to the Index, a home is deemed affordable if a family making the median national income of $64,000 is able to
purchase the property and devote no more than 28 percent of their income toward housing costs.
• The percentage of households that could afford to buy an entry-level home in California stood at 69 percent in the first
quarter of 2009, compared with 46 percent for the same period a year ago, according to the CALIFORNIA
ASSOCIATION OF REALTORS®’(C.A.R.) First-time Buyer Housing Affordability Index (FTB-HAI). The FTB-HAI
measures the percentage of households that can afford to purchase an entry-level home in California.
• The minimum household income needed to purchase an entry-level home at $213,040 in California in the first quarter of
2009 was $38,090, based on an adjustable interest rate of 4.96 percent and assuming a 10 percent down payment. First-
time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including
taxes and insurance was $1,270 for the first quarter of 2009.
• At $38,090, the minimum qualifying income was 42 percent lower than a year earlier when
households needed $65,030 to qualify for a loan on an entry-level home. Recent decreases in
home prices and mortgage rates have brought affordability into better alignment with income levels of the typical
California household, where the median household income is $61,030.
To read the full story, please click here:
http://money.cnn.com/2009/05/18/real_estate/most_affordable_cities/index.htm?postversion=2009051815
LINKS FOR BUYERS
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| James & Hayward |
| KIMBERLY JAMES & BRENDA HAYWARD 310.589.1201 310.457.6550 YourMalibuRealtors@yahoo.com |
Your Malibu Realtors
Buyers
Click to Read CNN Story in Full:
Click to Watch ABC New - Money Matters
Housing picture brightens in California - Wall Street Journal
sales of existing, single family homes remaining above the 500,000 level for the eighth
month in a row, California is being closely watched as a barometer of the economy.
Some economists believe these two factors indicate the state’s median price could be
at or near the bottom.
KEEP THIS IN MIND
• Sales of existing, single-family homes increased 49.2 percent in April in California
compared with the same period a year ago, according to the CALIFORNIA
ASSOCIATION OF REALTORS®’(C.A.R.) April sales and price report.
• As the level of unsold inventory declines, the state’s median price will likely stabilize.
Inventory levels for homes in the under $500,000 segment shrank to nearly three
months in April, compared with almost 10 months a year ago, while unsold inventory in
the more than $1 million segment rose to approximately 17 months, compared with
roughly 10 months in April 2008.
• The median price of an existing, single-family detached home in California during
April 2009 was $256,700, an increase of 1.4 percent compared with the prior month,
but a 36.5 percent decrease from the revised $404,470 median of a year ago.
• Favorable home prices in many parts of the state have led to an increase in
affordability for first time buyers. In the first quarter of 2009, affordability rose to 69
percent, enabling many to take advantage of first-time buyer programs and near
record-low interest rates.
To read the full story, please click here:
http://online.wsj.com/article/SB124353047811163187.html
sales of existing, single family homes remaining above the 500,000 level for the eighth
month in a row, California is being closely watched as a barometer of the economy.
Some economists believe these two factors indicate the state’s median price could be
at or near the bottom.
KEEP THIS IN MIND
• Sales of existing, single-family homes increased 49.2 percent in April in California
compared with the same period a year ago, according to the CALIFORNIA
ASSOCIATION OF REALTORS®’(C.A.R.) April sales and price report.
• As the level of unsold inventory declines, the state’s median price will likely stabilize.
Inventory levels for homes in the under $500,000 segment shrank to nearly three
months in April, compared with almost 10 months a year ago, while unsold inventory in
the more than $1 million segment rose to approximately 17 months, compared with
roughly 10 months in April 2008.
• The median price of an existing, single-family detached home in California during
April 2009 was $256,700, an increase of 1.4 percent compared with the prior month,
but a 36.5 percent decrease from the revised $404,470 median of a year ago.
• Favorable home prices in many parts of the state have led to an increase in
affordability for first time buyers. In the first quarter of 2009, affordability rose to 69
percent, enabling many to take advantage of first-time buyer programs and near
record-low interest rates.
To read the full story, please click here:
http://online.wsj.com/article/SB124353047811163187.html
Click to Read - Wall Street Journal