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fresno county real estate

published on August 12, 2021 - 10:29 AM
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Housing affordability in the Central Valley took an expected hit in the second quarter in the face of a highly competitive market fueled by low interest rates and tight inventory, according to the latest data from the California Association of Realtors.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2021 dropped to 23% from 27% in the first quarter of 2021 and from 33% in the second quarter of 2020, according to C.A.R.’s Traditional Housing Affordability Index. The second-quarter 2021 figure is less than half of the affordability index peak of 56% in the second quarter of 2012.

Fresno County’s affordability index was 43% for the second quarter, down from 46% in the first quarter and 51% a year ago. The median home price was $365,000, requiring monthly mortgage payment of $1,680 and minimum qualifying income of $67,200.

Kings County’s affordability index fell to 56% in the second quarter from 58% the previous quarter and 60% a year ago. The median home price was $305,000 with a monthly mortgage payment of $1,410 and minimum qualifying income of $56,400.

Madera County had an affordability index of 44% last quarter, down from 46% in the previous quarter and 51% a year ago. The median home price was $365,000, requiring monthly mortgage payment of $1,680 and minimum qualifying income of $67,200.

Tulare County’s affordability index was 45% in the second quarter, down from 47% in the first quarter and 52% a year ago. The median home price was $320,000 with a monthly mortgage payment of $1,470 and minimum qualifying income of $56,800.

A minimum annual income of $150,800 was needed to qualify for the purchase of an $817,950 statewide median-priced, existing single-family home in the second quarter of 2021. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,770, assuming a 20% down payment and an effective composite interest rate of 3.2%. The effective composite interest rate was 3.08% in first-quarter 2021 and 3.43% in second-quarter 2020.


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