CAR: Third Quarter California Housing Affordability

Market Report provided by California Association of Realtors

LOS ANGELES (Nov. 12) – Double-digit home price increases fueled by a shortage of homes for sale pushed California’s third quarter housing affordability to its lowest level in nearly two years, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2020 fell to 28 percent from 33 percent in the second quarter of 2020 and was down from 31 percent in the third quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index. The third-quarter 2020 figure was the lowest since the fourth quarter of 2018. California’s housing affordability index hit a peak of 56 percent in the third quarter of 2012.