Only 24 percent of households could afford to buy an entry-level home in California in the third quarter of 2007, the same level as a year ago, according to a report by the California Association of Realtors.
To buy an entry-level home in California at $482,910 in the third quarter of 2007, buyerswould need a household income of $99,590, based on an adjustable interest rate of 6.56 percent and assuming 10 percent down. The monthly payment including taxes and insurance would come out to about $3,320.
The First-Time Home Buyer Housing Affordability Index also measures affordability by region and counties.
In the San Francisco Bay Area region, the affordability index stood at 22 percent. This marked an improvement from last quarter, when it stood at 18 percent.
Broken down further, in San Francisco it stood at 17 percent, up from 15 percent last quarter, and in San Mateo County it stood at 20 percent, up from 18 percent last quarter. Santa Clara County hit 26 percent this quarter, up from 21 percent.