Affordability has been a hot button issue for California real estate for many years now. So it may surprise you to learn that homes in California are actually slightly more affordable now than they were a year ago.
The Q3 2016 median price for a single family home was $515,940. At that price, Californian’s need a minimum income of $100,290 to make monthly payments of $2,510. That includes principle, interest and taxes on a 30-year fixed mortgage at the standard 3.76% interest rate.
31% of California households can afford to purchase a home at that median price point, compared with 29% in Q3 2015.
When you add in townhomes and condos, 40% are able to purchase at the median price of $418,230.
Not surprisingly the least affordable counties were all in and around NorCal’s Silicon Valley. In San Francisco only 14% can afford a home, San Mateo 15% and Marin 19%. The most affordable counties were more rural areas in Southern California, with Kings at 57%, Kern at 56% and San Bernardino at 55%.
