Like everywhere else in California, housing affordability in San Diego fell for the sixth consecutive quarter, after reaching an all-time high during spring of 2012, as significantly higher home prices shut out more San Diego home buyers during the third quarter of 2013, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in San Diego dropped to 27 percent in the third quarter of 2013, down from 32 percent in second-quarter 2013 and from 43 percent in third-quarter 2012, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The third quarter 2013 figure fell below 30 percent for the first time since the third quarter of 2008.
C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.
San Diego home buyers needed to earn a minimum annual income of $99,670 to qualify for the purchase of a $485,040 countywide median-priced, existing single-family home in the third quarter of 2013. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $2,490, assuming a 20 percent down payment and an effective composite interest rate of 4.36 percent. The effective composite interest rate in second-quarter 2013 was 3.64 percent and 3.72 percent in the third quarter of 2012.
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California housing affordability hit a record high of 56 percent in first quarter of 2012. San Diego alike, in the first quarter of hit a record high in the high 40s during that same first quarter of 2012. Since then, a lack of housing supply and high demand have driven up home prices sharply and significantly reduced affordability.