According to a new report by the California Association of Realtors (C.A.R.), real estate prices including those for Huntington Beach homes pushed higher during the third quarter. This marks the sixth consecutive quarter that housing affordability has fallen.
Home prices continue to rise throughout California, and are up tremendously from spring 2012 when housing affordability reached an all-time high. As the recovery continued to take shape during 2013, many buyers found themselves priced out of the market, especially as mortgage rates ticked higher.
During the third quarter of 2013, CAR is reporting that the number of California home buyers who could afford to purchase an existing, median-priced single-family home declined 32 percent. That’s a 36 percent drop from the first quarter of this year, and a 49 percent plummet from the same time last year. The numbers were presented in C.A.R.’s Traditional Housing Affordability Index (HAI).
The HAI reviews financial data for California households and parses that information to see who can afford to purchase a single-family, median-priced home in the Golden State. Currently, Huntington Beach home buyers would need a minimum annual income of just under $90,000 in order to qualify for a $433,940 home here. And with many Huntington Beach homes priced well above that number, it’s easy to see why affordability has become an issue in this coveted beach town.
Part of the issue is the continued inventory shortages that markets around California are experiencing. In the first quarter of 2012, housing affordability here hit an all-time high, and 56 percent of buyers were able to afford a home. Since then, inventory has continued to dwindle and buyers became more comfortable with the housing recovery. Supply just hasn’t been able to keep pace with the increasing demand, and incidentally, prices have pushed higher for much of 2013.
To learn more about Huntington Beach homes for sale, please contact me. I’m a local real estate agent and I would love to assist you with your Huntington Beach real estate needs.