Good News for First Time Homebuyers_Orange County is now more affordable!
Posted: Thursday, November 05, 2009
by Hillary Caston
The Coastal Property Experts
According to the California Association of Realtors, the First-time Buyers Housing Affordability Index for California stood at 67 percent in the second quarter of 2009 compared with 49 percent (revised) in the second quarter of 2008. For California condos, that number is 70 percent. For the County of Orange, it is 53 percent.
So what does this mean? The higher the percentage, the more affordable it is for a home buyer to purchase a home. What these numbers are telling us is that 67 percent of households in California can now afford to purchase a home. And for Orange County, 53 percent of households are able to purchase an entry-level home.
The median price of an entry-level home in California was $224,180;
The estimated monthly payment, including tax and insurance, was $1330. This assumes a 10 percent down payment and an interest rate of 4.92 percent; if your terms are different, the payment will vary;
The minimum household income needed to purchase an entry-level home in this price range was $39,930.
What is interesting to note is that the minimum qualifying income was lower than last year when it was reported that a person needed a household income of $60,460 to qualify for a loan on an entry-level home. Interest rates are still low, as they were last year; however, with the decrease in home prices in Orange County overall, first time homebuyers are still able to buy a home now at good terms and great prices. The median income for the State of California is $61,030.
You may be wondering how this relates to Aliso Viejo Homes, Laguna Niguel Homes and Dana Point Homes. These are the areas that we have seen a lot of activity in first time home sales with people buying a home, getting great deals. For the beginning of November, 2009 there are 23 homes actively listed for sale in these cities with a maximum price of $225,000. Most of these are condos; however, there are a couple of single family residences as well.
This is incredible!
Add to this the just announced extension of the tax credit and you should start to wonder why you are waiting to buy a home in Orange County! First time homebuyers and investors alike should be able to see some interesting opportunities.
Laguna Beach Real Estate is one of the most dynamic housing markets in Southern California.To learn more about this area or the coastal communities of Orange County, California, visit Hillary Caston and her Coastal Property Experts team of real estate agent buyer professionals at http://www.TheCoastalPropertyExperts.com
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Top-level comments on this article: (2 total)Good to know. I sincerely hope this trend applies to other parts of the country as well! Thanks for sharing.My pleasure. I haven't seen the national numbers; however, California as a state seems to be one of the leaders in national trends. The conditions, incentives and "safety nets" available to buyers are phenominal. Please check out our blog for other articles/info: LagunaBeachRealEstateMarketBlog_comThanks for the comment!
I agree, this is good news. Could recession be over? If it is not, what you mentioned in your article is a good sign. Thanks for sharing this. Best of luck to you, ~Nenita~Time will tell if the national recession is over, but it seems clear that some will actually benefit from price adjustments!
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