California's housing affordability falls

The percentage of households in California able to afford a median-priced home stood at 19 percent in February, a 6 percentage-point decrease from the same period a year ago when the group's housing affordability index was at 25 percent, according to a report released Thursday by the California Association of Realtors. The Realtors' February index improved 1 percentage point from January, when it stood at 18 percent.

The index measures the percentage of households that can afford to purchase a median-priced home in California. The minimum household income needed to purchase a median-priced home at $471,620 in California in February was $109,380, based on an average effective mortgage interest rate of 5.71 percent and assuming a 20 percent down payment, according to CAR. The minimum household income needed to purchase a median-priced home was up from $91,050 in February 2004, when the median price of a home was $391,550 and the prevailing interest rate was 5.74 percent. The minimum household income needed to purchase a median-priced home nationwide was $44,300 in February, based on a purchase price of $191,000.

At 38 percent, the High Desert region was the most affordable region in the state, followed by the Sacramento region at 24 percent. The Santa Barbara region was the least affordable in the state at 8 percent, followed by the Northern Wine Country region at 9 percent. The association's home price figures are based on surveys of its member Realtor organizations. They do not include the prices of all homes sold, such as those sold by owners or real estate agents who are not part of the California Association of Realtors.