First-Time Buyer Housing Affordability Index remains at 24%

California Association of REALTORS®(C.A.R.) announced Thursday, August 29, that the percentage of households that could afford to buy an entry-level home in California stood at 24 percent in the second quarter of2007, compared with 23 percent for the same period a year ago.

C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures thepercentage of households that can afford to purchase an entry-level home inCalifornia. C.A.R. also reports first-time buyer indexes for regions and selectcounties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

At 45 percent, the High Desert region of the Antelope and Apple Valleys and Mojave Desert was the most affordable in the state, followed by the Sacramento region at 44 percent. Santa Barbara was the least affordable region in the state at 12 percent, followed by the Monterey region at 17 percent.