1% Fewer Can Qualify for Home in Area

Buying a house in California’s urban coastal areas, including Orange County, got more difficult than ever during August.

For the state as a whole, however, 24% of families earned enough to afford a median-priced house, about the same as in July, the California Assn. of Realtors said Wednesday.

Separately, the U.S. Census Bureau reported that 2 million fewer U.S. families can afford to own their own homes this year than in 1987. And a national real estate expert said Wednesday that the so-called affordability problem may force Congress to take legislative action.

In Orange County, according to the realtors association, only 17% of families could afford the median price, which soared by $5,286 in August to $224,828.

At that price, a family needed a yearly income of $69,999 to qualify for a loan with monthly payments of $1,750.

In July only 18% of Orange County families could afford the median resale home. A year ago, 28% could afford a house and the median price was only $170,211.

The association assumes a family would need to make a 20% down payment and spend 30% of its monthly income on payments for a 30-year mortgage with an average interest rate of 9.34%.