State’s housing affordability slips

Housing affordability in California went backward In the second quarter, the result of rising home prices and higher mortgage rates.

Only 19 percent of the state’s households could afford a median-priced single-family home – $916,750 – during that time, down from 22 percent in the first quarter, but up from 17 percent year-over-year, according the California Association of Realtors.

A yearly income of $228,400 was need to make that purchase. That price assumes monthly mortgage payments of $5,710, and is based on a 30-year fixed-rate mortgage and a 6.5 percent interest rate.

Thirty percent of the state’s homebuyers could afford $670,000 median-priced condominium or townhome during the second quarter. That would require a minimum annual income of $166,800 to make monthly payments of $4,170.

In the Inland Empire, 25 percent of all households could afford a median-priced $605,000 home. That would require an annual income of $105,800 to cover monthly payments of $3,770, the association reported.