by Calculated Risk on 8/11/2005 08:33:00 PM

The California Association of Realtors reports: California's Housing Affordability Index fell two points to 16 percent in June

The percentage of households in California able to afford a median-priced home stood at 16 percent in June, a 2 percentage-point decrease compared with the same period a year ago when the Index was at 18 percent, according to a report released today by the California Association of REALTORS® (C.A.R.). The June Housing Affordability Index (HAI) was unchanged from May, when it also stood at 16 percent.
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The minimum household income needed to purchase a median-priced home at $542,720 in California in June was $125,870, based on an average effective mortgage interest rate of 5.71 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $111,420 in June 2004, when the median price of a home was $468,050 and the prevailing interest rate was 6.01 percent.

See article for table of affordability and prices by region.