Housing affordability improved slightly in all Southern California regions in the second quarter of 2020, although higher home prices and lower household income dampened the statewide picture, the California Association of Realtors said Wednesday.
In the Los Angeles metro area, 32% of residents could afford to purchase the $581,000 median-priced home in the second quarter, up from 31% in the first-quarter and 29% in the second quarter of 2019.
In Orange County, 25% of residents could afford to purchase the $859,000 median-priced home in the second quarter, up from 24% in both the first-quarter of 2020 and the second quarter of 2019.
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Statewide, 33% percent of households could afford to purchase the $610,850 median-priced home in the second quarter, down from 35% in first-quarter but up from 30% a year ago.
According to CAR, a minimum annual income of $115,200 was needed to make monthly payments of $2,880, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 3.43 percent interest rate.
Forty-four percent of home buyers statewide were able to purchase the $480,000 median-priced condo or townhome. An annual income of $90,400 was required to make a monthly payment of $2,260.
Housing affordability for condominiums and townhomes was unchanged from first-quarter 2020, with 44% of California households earning the minimum income to qualify.
Compared with California, more than half of the nation's households (57%) could afford to purchase a $291,300 median-priced home, which required a minimum annual income of $54,800 to make monthly payments of $1,370, the report said.
The complete report can be found at www.car.org/en/aboutus/mediacenter/newsreleases/2020releases/2qtr2020affordability.