The California Association of REALTORS® (C.A.R.) reported housing affordability in the state rose to 56 percent in the first quarter of this year, setting a record high. The favorable housing affordability level is due to record-low interest rates and stabilizing home prices, said REALTOR® officials.
In the first quarter of 2012, 56 percent of home buyers could afford to purchase a median-priced, existing single-family home in the state, up from 55 percent in fourth-quarter 2012 and from 53 percent in first quarter 2011, according to C.A.R.'s Traditional Housing Affordability Index (HAI). 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.
In Santa Clara County 42 percent of home buyers could afford to purchase a median-priced, existing single-family home in the first quarter of this year, up from 38 percent in the first quarter of last year and 40 percent in fourth-quarter 2011. Home buyers needed to earn a minimum annual income of $108,031 to purchase a median home of $535,500. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $2,701, assuming a 20 percent down payment and an effective composite interest rate of 4.16 percent.
According to C.A.R., the median price of a single-family home in Santa Clara County rose 10.6 percent to $636,000 in April from the median of $575,250 in March and up 10 percent from the median of $578,000 in April 2011. Home sales in April were up 6.6 percent from March sales, but down 3 percent from the previous year.
"The housing market is really favorable for buyers right now with the record affordability due to record-low interest rates and stable prices, but inventory continues to be a big problem in our region," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.