In the second quarter of 2011, median-priced single-family homes became less attainable for average homebuyers, especially in already high-priced areas like San Francisco and the Central Coast, according to CAR.
The report indicates that only 51 percent of potential homebuyers would qualify for a home loan in the second quarter, down from 53 percent in the first quarter of 2011. While the reports may indicate a stall in real estate growth, the number of homebuyers able to afford a new property in the state is up from 46 percent at the same time last year, according to the source.
The number of buyers able to comfortably obtain a mortgage may continue to decline as the upcoming decrease in conforming loan limits by Fannie Mae and Freddie Mac draws nearer, the source explains.
“Buyers who plan to finance their home purchase with a mortgage of $625,500 or more will face higher interest rates, higher down payments, and tighter loan qualification requirements beginning October 1,” explained Beth L. Peerce, president of CAR.
Peerce went on to recommend that homebuyers capable of purchasing a home this summer should not hesitate to do so, according to the source.