50° CLOUDY, Report: More first-time buyers can afford a home
Last Modified: Tuesday, February 19, 2008 at 2:21 p.m.
Falling home prices in Sonoma County are making it easier for first-time buyers to afford a house, according to a study issued Tuesday.
The study, by the California Association of Realtors, found that 36 percent of the households in Sonoma County could afford an entry-level home in the fourth quarter, up from 25 percent a year ago.
The trade group calculates affordability based on the minimum household income required to make a 10 percent down payment on an entry-level home and secure an adjustable rate loan at 6.21 percent.
Sonoma County buyers needed to earn $84,900 to afford a $424,050 house, the price the trade association estimated for an entry-level home in the county during the quarter. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price, according to the group.
The monthly mortgage payment would be $2,830, including taxes and insurance.
Statewide, 33 percent of the households earned enough money to buy an entry-level home in the fourth quarter, up from 25 percent a year ago.
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