Report: Homebuying Capacity Holds at Same Level in Riverside County

By City News Service:

The percentage of Riverside County households that could afford to purchase a median-priced home was unchanged over the past two quarters -- but was down from a year ago -- a real estate tracking firm recently reported.

About 39 percent of county residents could qualify to buy a single- family dwelling between Oct. 1 and Dec. 31, 2015 -- a figure equal to those who qualified in the prior quarter, according to the California Association of Realtors.

However, CAR’s Housing Affordability Index showed a year-over-year drop, with the number of qualifying homebuyers at 41 percent in the last quarter of 2014.

In calculating its affordability index, CAR used a 30-year fixed mortgage with a 4 percent annual interest rate as a benchmark. After factoring in taxes, insurance and a 20 percent down-payment, a local household would need a qualifying annual income of $68,070 to afford a property, making average monthly payments of $1,700, according to the association’s estimates.

In the most recent quarter, the countywide median home price was $340,260, compared with $335,460 in the third quarter of last year, according to figures.

When San Bernardino County numbers are added, 45 percent of the inland region’s households are able to afford a home, CAR data showed.

Statewide, 30 percent of prospective homebuyers could qualify to purchase a property at the fourth-quarter median price of $483,050.

That compared with 29 percent in the third quarter of 2015, when the median price stood at $488,540.

According to CAR, statewide housing affordability peaked at 56 percent in the first quarter of 2012.

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