The California Association of Realtors has some good news and bad news to report.
The good news is that home prices continue to rise or at least remain stable. But the bad news is that the rise in home price continues to drive home affordability down in Fresno and other central San Joaquin Valley counties.
In Fresno County, 56% of prospective homebuyers could afford a median-priced single-family house compared to 61% during the second quarter of the year, the association said in its third quarter report released last week.
Last year at the same time, affordability was much higher at 69%.
A Fresno buyer would have to earn $37,920 a year to afford a median-priced home at $184,550.
Home affordability levels have also fallen in other Valley counties. About 62% of the buyers in Kings and Madera counties could afford to buy a home compared to 70% and 71% during the second quarter, respectively. In Tulare County, 61% of the buyers could qualify compared to 66% the previous quarter.
Even with the declines, the Valley still remains one of the most affordable areas statewide to buy a home.
Only 15% of the buyers in San Mateo could afford to buy a home and 16% in San Francisco. In the Sacramento area, 50% of the homebuyers could buy while 35% of the buyers in Los Angeles could afford a home.