Home Affordability Is Near Record Low
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California’s high home prices, paired with rising mortgage interest rates, shut out 85% of households in the state from the housing market, an industry report said.
Only 15% of California households could afford to buy a median-priced home in the state in October, the same level as in September and down from 19% a year earlier, according to the report from the California Assn. of Realtors.
The group’s measure of home affordability is hovering above a record low 14% posted in August. Home prices in California have doubled over the last four years.
The minimum household income needed to buy a median-priced home at $538,770 in California in October was $128,480, based on an average effective mortgage interest rate of 6.03% and assuming a 20% down payment, the Realtors’ group said.
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