Fresno Bee Newsroom Blog

Real Estate: Housing affordability falls as home prices rise

Housing affordability inched up in Fresno during the fourth quarter of 2012 while it fell statewide as home prices began to rise, according to the California Association of Realtors.

In the Fresno metropolitan area, 70% of the prospective home buyers could afford to buy a median-priced, single-family house during the fourth quarter of 2012 compared to 69% the previous quarter, according to the association’s housing affordability index released Monday.

That means buyers only had to earn a minimum annual income of $28,870 to buy a $152,360 house, the association said.

Fresno’s home affordability, however, fell slightly compared to the fourth quarter of 2011 when 71% of the home buyers could afford to buy a median-priced home.

Other Valley cities, including Madera and Tulare, also saw a drop in home affordability to 74% and 71% in the fourth quarter, respectively, compared to 76% and 73% in the third quarter.

But Kings County saw a increase to 76% from 74%, the report said.

Statewide, the housing affordability is much lower with only 48% of the prospective home buyers able to buy a median-priced house compared to 49% in the third quarter of 2012.

Visit the California Association of Realtors to see the affordability index.

(Chart courtesy of the California Association of Realtors)

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