More Coachella Valley Residents Can Afford To Buy A Home

The percentage of households that could afford to buy an entry-level home in the Riverside/San Bernardino area rose to 79 percent in the fourth quarter of 2010, up from 78 percent in the previous quarter and 78 percent during the same period a year ago.

In the Palm Springs/Lower Desert area, the California Association of Realtors’ First Time Buyer Housing Affordability Index was 78 percent in the 2010 fourth quarter, up from 75 percent in the previous quarter and up from 74 percent in the comparable year-ago period, Los Angeles-based CAR reported today.

The minimum household income needed to purchase an entry-level home at $158,340 in Riverside/San Bernardino in the 2010 fourth quarter was $24,300, based on an adjustable interest rate of 3.39 percent and assuming a 10 percent down payment. The monthly payment, including taxes and insurance, was $810, according to CAR.

In Palm Springs/Lower Desert, the entry-level home price in the fourth quarter was $146,720; the minimum required household income was $22,500; and the monthly payment was $750.

Statewide, the index — which CAR calls “the most fundamental measure of housing well-being for first-time buyers in the state” — stood at 69 percent, compared with 64 percent for the same period in 2009.

The minimum household income needed to purchase an entry-level home at $256,220 in California in the fourth quarter of the year was $39,600, and the monthly payment was $1,320.

At 85 percent, the High Desert region was the most affordable area in the state. The San Francisco Bay region was the least affordable at 55 percent.