2023 housing affordability on par with late 2022 for SD homebuyers
San Diego County's housing affordability for the first part of the year remained on a par with the last months of 2022, the California Association of Realtors announced Tuesday.
Fifteen percent of county households could afford to buy the $880,000 median-priced home in the first quarter of this year, the same percentage as during the last quarter of 2022, and down from 19% in first-quarter 2022, according to the association.
A minimum annual income of $218,000 was needed to make monthly payments of $5,450, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.48% interest rate, the report said.
Twenty percent of California households could afford to purchase the $760,260 median-priced home in the first quarter of 2023, up from 17% in fourth- quarter 2022 and down from 24% in first-quarter 2022, according to the association.
A minimum annual income of $188,400 was needed to make monthly payments of $4,710, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.48% interest rate, the report said.
Meanwhile, 26% percent of home buyers were able to purchase the $619,900 median-priced condo or town home. A minimum annual income of $153,600 was required to make a monthly payment of $3,840, CAR determined.
Looking ahead, while home prices in general are expected to improve in the second half of the year, the statewide median home price is projected to decrease 5.6% to $776,600 in 2023, down from the annual median price of $822,300 recorded in 2022. The updated projection on the statewide median price, however, is an increase from the estimate of $758,600 forecast last October. CAR also projects the 30-year fixed mortgage interest rate to average 6.3% for the year.
Compared with California, four in 10 of the nation's households could afford to purchase a $371,200 median-priced home, which required a minimum annual income of $92,000 to make monthly payments of $2,300. Nationwide affordability was down from 47% a year ago.