Housing affordability in California stabilized at a very low rate at the end of 2005, the California Association of Realtors said on Thursday.
The percentage of households that could afford a median-priced home in the state was unchanged from November's 14 percent, which is 5 percentage points lower than the rate at the end of 2004.
Nationwide, about half of all households can afford to buy a median-priced home.
The minimum household income needed to purchase a median-priced home at $548,430 in California in December was $134,200, based on an average effective mortgage interest rate of 6.33 percent and assuming a 20 percent downpayment.
In CAR's Santa Clara region, the affordability rate was 18 percent, down from 21 percent the year before. The median price in the region of $734,950 was down 1.3 percent from November, but up more than 11 percent from the end of 2004.
In the Monterey region, where the median price was $712,500, the affordability rate was 9 percent, down from 11 percent in 2004.
Affordability increased slightly in Santa Cruz county, at 11 percent in December 2005 versus 10 percent in November. It was down from December 2004, though, when the rate was 14 percent. The median price there was $742,000, down from $789,500 in November.
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