Entry-Level Housing Affordability Reaches 67% in Second Quarter of 2009

FINALLY...homes are becoming more affodable for our young people!! Read on:

RISMEDIA, August 22, 2009-The percentage of households that could afford to buy an entry-level home in California stood at 67% in the second quarter of 2009, compared with 49% (revised) for the same period a year ago, according to a report recently released by the California Association of Realtors® (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at $224,180 in California in the second quarter of 2009 was $39,930, based on an adjustable interest rate of 4.92% and assuming a 10% down payment. First-time buyers typically purchase a home equal to 85% of the prevailing median price. The monthly payment including taxes and insurance was $1,330 for the second quarter of 2009.
At $39,930, the minimum qualifying income was 34% lower than a year earlier when households needed $60,460 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households, where the median household income is $61,030.
The First-time Buyer Housing Affordability Index declined 2 percentage points in the second quarter of this year compared with the first quarter of 2009, due to a 6.4% increase in the price of an entry-level home.Read more: http://rismedia.com/2009-08-22/entry-level-housing-affordability-reaches-67-in-second-quarter-of-2009/#ixzz0OvBVyMIX

Busy is good!

In this business of real estate, busy is good!! Where did June & July go? THAT's how busy it's been. Yes, people are buying. Most of what is going is mid-range priced homes (around $150,000). However, we still have the occasionally 2nd home buyers looking for something more substantial and taking advantage of prices, mortgage rates, and terms. I'll keep you posted as the summer progresses!