Data Tracker

See where in Sacramento you can afford to buy a home

By Phillip Reese - preese@sacbee.com

A view of the pool and house listed last year by Annette Black that may be one of the highest priced homes ever sold in Sacramento County. Median sales prices in the county reached a seven-year high earlier this year.
A view of the pool and house listed last year by Annette Black that may be one of the highest priced homes ever sold in Sacramento County. Median sales prices in the county reached a seven-year high earlier this year. hamezcua@sacbee.com

Home prices in the Sacramento region rose by 6 percent during the last 12 months, putting many neighborhoods out of financial reach for potential homebuyers, according to a Bee review of industry data.

The median-priced home in the Sacramento region sold for $320,000 in May, according to tracking firm Zillow.com. A local household would need to earn about $85,000 annually to afford a home at that price, assuming they could put down 10 percent.

About two thirds of the region's households make less than $85,000 each year.

Home affordability varies greatly by area. The median-priced home in Roseville costs about twice as much as the median-priced home in North Highlands. And the median-priced home in Granite Bay costs about twice as much as the median-priced home in Roseville.

This map shows where a household, based on its income, could afford to buy the median-priced home in June 2015.

 

If using the Bee's mobile app, click here to see map.

Sources: Sacramento Association of Realtors for all Sacramento County home prices (June 2015); Zillow.com for prices outside Sacramento County (May 2015).

Assumptions for map: Affordability based on household capacity to purchase median-priced home in each area. Map assumes household makes a down payment equivalent to one-third of annual income; a property tax rate of 1 percent; home insurance payments of $800 per year; 30-year mortgage with a 3.9% interest rate and debt not related to housing equivalent to 8 percent of annual income. Areas shaded green assume a debt-to-income ratio of 30 percent or lower. Areas shaded yellow assume a debt to income ratio of 36 percent or lower.

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