San Diego Home Affordability Doubles in Two Years!

San Diego County's declining home prices have boosted first-time buyer affordability to 59 percent, more than twice what it was two years ago, the California Association of Realtors reported Friday.

First-timers typically pay 85 percent of the region's median price for a single-family resale home, the trade group said.

For the second quarter of the year, such buyers in San Diego needed a household income of $52,550 to cover the $1,750 monthly payment on a $259,000 home.

A year ago, only 46 percent of households had the income to cover a first-time home selling for $369,700 and carrying a monthly mortgage payment of $2,269. In the second quarter of 2007, only 23 percent had the necessary income to afford an even more expensive home.

Statewide, first-time affordability rose from 49 percent in the second quarter of 2008 to 67 percent in the second quarter of this year, ended June 30. Nationally, first-time affordability stood at 76 percent, up from 69 percent over the same period.

The highest affordability in the state was 86 percent in the high desert area, where the median starter-home price was $91,110, and the lowest was 36 percent in San Francisco with a price of $557,600.

Source: San Diego Union Tribune, 8/14/09