Higher Rates Squeeze Riverside County Home Affordability

RIVERSIDE (CNS) - Housing affordability slipped in Riverside County
during the second quarter as higher mortgage rates and rebounding home prices
continued to make homeownership more difficult for prospective buyers,
according to a report released today by the California Association of Realtors.
  

In Riverside County, 28% of households could afford to purchase the
county's median-priced single-family home of $640,000 during the second
quarter, down from 29% in the first quarter but up from 25% a year earlier, the
association said. A minimum annual income of $159,600 was needed to qualify for
the purchase.
  

Across the Inland Empire, 25% of households could afford the region's
$605,000 median-priced home. Buyers needed a minimum annual income of $150,800.
  

``Despite improving from a year earlier, affordability remains near
historic lows as elevated housing costs and borrowing expenses continue to
limit homeownership opportunities across many California communities,'' the
report said.
  

Statewide, housing affordability fell to 19% in the second quarter
from a four-year high of 22% in the first quarter. The statewide median home
price rose to $916,750, requiring a minimum qualifying income of $228,400,
according to the association.
  

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