More Able To Afford Riverside County Homes

The percentage of households that could afford to buy an entry-level home in Riverside County rose to 66 percent in the fourth quarter of 2011, up from 65 percent in the previous quarter and above the 64 percent rate during the same period a year ago.

The increase was echoed across the state in the fourth quarter, matching a record high of 55 percent set in the first quarter of 2009, according to the Los Angeles-based California Association of Realtors. That rate was up from 52 percent in the third quarter of 2011 and up from 50 percent in the fourth quarter of 2010.

CAR’s Housing Affordability Index measures the percentage of all households that can afford to purchase a median-priced, single-family home in California.

The minimum household income needed to purchase an entry-level home at $199,660 in Riverside County in the 2011 fourth quarter was $40,840, assuming a 20 percent downpayment and 4.31 interest rate. The monthly payment, including taxes and insurance, was $1,520, according to CAR.

Statewide, home buyers needed to earn a minimum annual income of $57,750 to qualify for the purchase of a $282,350 median-priced, existing single- family home in the fourth quarter of 2011.

The monthly payment, including taxes and insurance on a 30-year fixed- rate loan, would be $1,440.

At 78 percent, San Bernardino County was the most affordable area in the state. San Francisco County was the least affordable at 26 percent.