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CALIFORNIA'S HOUSING AFFORDABILITY INDEX REMAINS AT
19 PERCENT The percentage of households in California
able to afford a median-priced home stood at 19 percent in
December 2004, a 4 percentage-point decrease compared with
the same period one year earlier when the Index was at 23
percent, according to a recent C.A.R. report. The December
Housing Affordability Index (HAI) was unchanged from November,
when it also stood at 19 percent. C.A.R.'s monthly housing
affordability index measures the percentage of households
that can afford to purchase a median-priced home in California.
The index is the most fundamental measure of housing well-being
in the state. At 41 percent, the High Desert region was the
most affordable C.A.R. region in the state, followed by the
Central Valley and Sacramento regions at 24 percent. The Santa
Barbara region was the least affordable in the state at 9
percent, followed by the Monterey, Northern Wine Country and
San Diego regions at 11 percent.
ATTITUDES ABOUT REAL ESTATE CHANGING AMONG SENIOR
HOMEBUYERS Attitudes about real estate and the homebuying
process are changing among people 50 years of age and older,
according to a recent survey by ERA Real Estate. The study
revealed contradictions to longstanding assumptions about
the mature homebuyer, including the likelihood that such buyers
will move to adult communities and downsize their current
accommodations. Only 8 percent of participants planning a
move in the next five years said they would consider purchasing
a home in an active adult community, and only 11 percent feel
that their current home is too big. The survey also revealed
that the Internet is the most popular homebuying research
tool for seniors considering a move in the next five years.
According to the respondents, in-depth property descriptions,
photos and virtual tours are the most important factors when
searching for real estate online. Nearly 92 percent said they
were only "somewhat to not at all likely" to choose a real
estate agent based on Internet research, reflecting the value
senior homebuyers put on existing relationships with a broker
or agent.
CALIFORNIA HOUSEHOLDS $56,070 SHORT IN INCOME NEEDED
TO PURCHASE HOME With a median household income of
$53,240, California households are $56,070 short of the $109,320
qualifying income needed to purchase a median-priced home
at $470,920 in California, according to the C.A.R. Homebuyer
Income Gap Index™ (HIGI) report for the fourth quarter of
2004. The HIGI™ is a quarterly analysis of the difference
between the median household income and the qualifying income
needed to purchase a median-priced, single-family home for
the state and for select regions within the state. The HIGI™
for California increased 41.6 percent during the fourth quarter
of 2004 compared to the fourth quarter of 2003, when the gap
stood at $39,610. During the fourth quarter of 2004, potential
homebuyers in the Central Valley had the smallest income gap
at $28,730, while potential homebuyers in the San Francisco
Bay Area faced the highest gap in the state at $84,690.
Information providec by - C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.
