Resale Homes Remain Affordable for 13%

The number of county households that can afford to buy a median-priced, single-family resale house held steady in June at 13%, unchanged from May, the California Assn. of Realtors reported Monday.

The median-priced house sold for $251,674 in June, which meant that a household needed a minimum annual income of $85,789 to buy and faced monthly payments of $2,145.

In June, 1988, when the median sales price was $208,094, 23% of the households could afford to buy, the group estimated.

The CAR figures assume that home buyers pay the traditional 20% down payment and obtain a 30-year mortgage. The figures do not include new homes or condominiums.

The percentage of households statewide that could afford to buy a median-priced resale house in California increased in June for the first time in six months.

Throughout the state, 16% of all households could buy, up from 15% in May. The median-priced, single-family resale house in California sold for $200,445 in June.

A household needed a minimum annual income of $68,326 to qualify for a mortgage on such a dwelling and faced monthly payments of $1,708, including property taxes and insurance.

AFFORDABILITY INDEX FOR EXISTING HOMES

Thirteen percent of Orange County households could afford to buy the median-priced resale home in the county in June, compared to 13% in May and 23% in June, 1988.

Median Monthly Selling Price Mortgage Payment June May June June May June 1989 1989 1988 1989 1989 1988 Orange County $251,674 $247,397 $208,094 $2,145 $2,089 $1,612 United States 93,200 92,600 90,200 794 782 699 California 200,445 201,930 170,185 1,708 1,705 1,319 S.F. Bay Area 268,903 267,634 215,434 2,292 2,260 1,669 Los Angeles 220,253 217,708 180,223 1,877 1,838 1,397 San Diego 177,736 175,585 147,605 1,515 1,483 1,144 Riverside/ 123,643 122,983 108,567 1,054 1,038 841 San Bernardino

Minimum Percent Annual Income Qualified June May June June May June 1989 1989 1988 1989 1989 1988 Orange County $85,789 $83,561 $64,499 13% 13% 23% United States 31,769 31,277 27,958 44 45 47 California 68,326 68,204 52,749 16 15 22 S.F. Bay Area 91,661 90,396 66,774 9 9 18 Los Angeles 75,078 73,533 55,860 12 13 21 San Diego 60,585 59,306 45,750 18 18 25 Riverside/ 42,146 41,539 33,651 29 29 37 San Bernardino

Source: California Assn. of Realtors