Turmoil in the California housing market has dramatically dropped home sale prices, and that means that buying a house in the state is becoming easier for those with steady incomes and good credit ratings.
The California Association of Realtors reported today that the proportion of households that could afford to buy an entry-level home was 64 percent in the third quarter of this year, up sharply from the 55 percent level a year earlier.
The minimum household income needed to purchase an entry-level home priced at $247,150 in the third quarter was $43,500, based on an adjustable interest rate of 4.79 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance for such a purchase was $1,450.
California's affordability index, however, is still below the national rate of 76 percent, and there are wide variations within the state. The "high desert" region north of Los Angeles - Lancaster, Palmdale and surrounding communities - had the highest affordability rate of 85 percent, because its home prices have fallen to the state's lowest. San Luis Obispo County had the lowest affordability index, 47 percent, dropping slightly below even San Francisco and other Bay Area communities with traditionally high housing prices.
The full region-by-region breakdown is available here.
Torey Van Oot and the Bee Capitol Bureau report on the people and politics of California government. Get 
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