Second Quarter Housing Affordability Declines Statewide And In 19 Of 26 California Counties, C.a.r. Reports – Yahoo Finance

Only Monterey County experienced an improvement in housing affordability from the previous quarter, largely due to a lower median home price. Housing affordability in San Mateo, Sonoma, San Luis Obispo, Santa Barbara, Fresno, and Kings counties was unchanged quarter to quarter. Housing affordability has dropped 26 percent since first-quarter 2012, when housing peaked as the most affordable in California. With home prices increasing at double-digit rates throughout 2013 and interest rates higher than levels observed in early 2013, both the monthly payment, including taxes and insurance (PITI), and minimum income required to purchase a home, shot up by more than 66 percent at the statewide level.

Home-Price Gains Decelerate in Many Metro Areas During Second Quarter – Yahoo Finance

Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons.


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