Most families can now afford house
59% can now afford to buy an entry-level home according to CAR report compared with just 33% a year earlier. The median price fell 40% from $411,170 in the 4th quarter of 2007 to $248,030 in the comparable period last year.
The minimum household income needed for an entry-level home was $48,900 based on an adjustable rate mortage of 6.02% and a 10% down payment. The median income for California households in the 4th quarter was $59,160. The monthly payment, including taxes and insurance, was $1,630.
Regarding the High Desert region, which includes the Antelope Valley, was the most affordable area in the state. 76% can afford a house. The entry-level price was $125,080; the qualifying income, $24,600 and the monthly payment, $820.
According to CAR's vice president Leslie Appleton-Young it is the best news because it means the markets are working and the first-time buyers and investors are responding".
Although lower home prices mean more options for home buyers, it is important that home buyers still meet the minimum qualifications to qualify for a mortgage loan. Qualifications may include a FICO score of 720 or higher, and a 20% down payment.
Gregory Wilcox, Daily News 02/19/09
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment