Good news coming out from CAR, California Association of Realtors, for California would be home owners… Lower home prices and record-low interest rates are contributing to the continual improvement of housing affordability.
The percentage of home buyers that could afford to purchase a median-priced, single-family home in California has continued to rise with each quarter according to CAR’s Traditional Housing Affordability Index, and is currently at 52 percent. This is a slight increase from 51 percent in the second-quarter 2011, but notably higher than the 46 percent in the third quarter of 2010.
Economic factors such as the addition of 80,000 jobs and the unemployment rate currently at the lowest its been in six months, provide prospective and current homeowners with a positive outlook on the housing market to come.
The current price of homes and the number of homes for sale offer first-time buyers and investors equal opportunities to take advantage of some of the lowest interest rates in real estate history.