Sacramento most affordable housing market in the state
Sacramento Business Journal - 9:52 AM PST Monday, March 5, 2007
About two of every five first-time homebuyers could afford a home during the fourth quarter in Sacramento County, a slight increase from the third quarter -- and a much better rate than home-shoppers statewide.
The county's affordability index inched up to 41 percent, from 38 percent in the third quarter and 40 percent in fourth-quarter 2005, according to a California Association of Realtors report released Friday. The county had the highest affordability rating in the state, tied with Fresno County and the High Desert, which includes the cities of Lancaster and Palmdale.
Statewide, the affordability index improved to 25 percent, compared with 24 percent in third-quarter 2006 -- and a bit lower than the 27 percent rate in fourth-quarter 2005. Los Angeles, Santa Barbara and San Francisco counties have the lowest affordability rates at 19 percent in the state.
The affordability rate for first-time homebuyers is based on the county's median home price and the median income. Sacramento County's affordability rate is based on a median home price of $310,340 and median annual income of $62,900, which would create a monthly mortgage payment of $2,100 including property tax and insurance.