Seventeen percent of California homebuyers could afford to purchase a median-priced, existing single-family home in the first quarter of 2024. While it may be a depressing stat, it’s actually an improvement! That’s up from 15 percent in the fourth quarter of 2023, but down from 20 percent in Q1 of 2023, according the California Association of Realtors.
The first-quarter 2024 figure is less than less than a third of the affordability index peak of 56 percent in the first quarter of 2012. Last quarter, a minimum annual income of $208,400 was needed to make monthly payments of $5,210—including principal, interest and taxes—on a 30-year fixed-rate mortgage at a 6.86 percent interest rate.
Compared with California, nearly four in 10 of the nation’s households could afford to purchase a $389,400 median-priced home. Nationwide affordability was down from 40 percent a year ago.
Back home and also a slight improvement, the share of California households that could afford a typical condo/townhome in first-quarter 2024 rose to 24 percent, up from 22 percent in the previous quarter.
San Luis Obispo, Orange, San Diego, Monterey, Santa Barbara and Mono counties were the least affordable in California last quarter, while Lassen remained the most affordable county in the state.