According to C.A.R. reports, entry-level housing affordability has doubled in 2008's second quarter compared to last year.

The California Association of Realtors released a report today stating 48 percent of Los Angeles households could afford to buy an entry-level home in California, compared to the 24 percent for the same period just a year ago.

C.A.R.'s First Time buyer Housing affordability Index measured the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time home buyer indexes for regions and select counties within the state. The Index is the most fundamental measure for housing well-being for first time home buyers.

In 2008's second quarter $62,870 was the minimum housing income needed to purchase an entry-level home in California at $329,120, based on an adjustable interest rate of 5.69 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $2,100 for the second quarter of 2008.

At $62,870, the minimum qualifying income was 38 percent lower than a year earlier when households needed $101,440 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment wit income levels of the typical California households, where the median household income was $59,160.

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