Housing affordability rises in Sonoma County

Almost two-thirds of the households in Sonoma County can now afford to buy an entry-level home, up from 44 percent a year ago, according to a report issued Thursday.

Falling prices and low interest rates put homes within reach of 63 percent of the county’s households in the first quarter, the highest level since the California Association of Realtors began tracking affordability in 2003.

In the Bay Area, the affordability rate almost doubled to 62 percent, up from 32 percent a year ago. Affordability also rose across California, where 69 percent of households could afford an entry-level home, up from 46 percent a year ago.

To buy an entry-level home in Sonoma County, a buyer needed an annual income of at least $49,260 and would pay $1,640 a month in mortgage, property tax and homeowners insurance payments.

The study assumes the buyer obtains an adjustable-rate loan at 4.96 percent and makes a 10 percent down payment on a house priced at 85 percent of the median price.