With home prices continuing to rise, so is the number of people who can't afford to purchase a house in Riverside County, the California Association of Realtors announced Monday.
Across the state, the percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California during the second quarter of the year was 36 percent, down from 44 percent in the first quarter and down from 51 percent in the same quarter last year, according to CAR.
In Riverside County, 49 percent of home buyers could afford to purchase a house, down from 54 percent in the first quarter and 65 percent in the second quarter of 2012.
CAR's Housing Affordability Index measures the percentage of households that can afford to purchase a median-priced single-family home and, according to CAR, is considered the most fundamental measure of housing well-being for home buyers in the state.
According to CAR, home buyers needed an annual income of $79,910 to
qualify for the purchase of a $415,770 statewide median-price single-family
home in the second quarter. The monthly payment would be $2,000, assuming a 20
percent downpayment and interest rate of 3.64 percent on a 30-year fixed loan.
In Riverside County, home buyers needed a minimum annual income of $54,780 to qualify for the purchase of a $285,020 median-price single family home.
The median home sales price in Temecula hovered around $357,000 during April through June of this year, Trulia.com reports.
Nearly all regions of the state experienced significant quarter-over- quarter declines in housing affordability, with Bay Area and coastal regions experiencing the greatest drops, according to CAR.
At an index of 71 percent, Madera County was the most affordable county
of the state while San Francisco and San Mateo counties tied for the least
affordable at 17 percent.
—City News Service and Maggie Avants contributed to this report.