California Housing Affordability Improves, Matching Previous Record High

Guess what happens when interest rates stay low, and short sales and foreclosures continue to flood the market? The housing affordability improves.

The fourth quarter of 2011 saw California’s housing affordability rise to its highest level matching a record high in 2009 according to CAR. The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 55 percent in the fourth quarter of 2011, up from 52 percent in third-quarter 2011 and from 50 percent in the fourth quarter of 2010.

In the San Francisco Bay Area, housing affordability rose in most counties except San Francisco and San Mateo counties, where it remained unchanged, mostly due to home price increases in those counties.  At 78 percent, San Bernardino County represented the most affordable, while San Francisco County marked the least affordable, with only 26 percent of households able to purchase the county’s median-priced home.

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Filed under California, Foreclosure, San Francisco, San Mateo county, short sales

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