SAN FRANCISCO (CBS SF) – Prospective home buyers looking to buy a median-price home in San Francisco now need an annual income over $330,000, according to a new report by the California Association of Realtors.
Earlier this week, the group released its latest Housing Affordability Index report, based on housing sales in each county in California during the first quarter of 2018.
With the median home price in San Francisco rising to $1.61 million, the realtors found a prospective homebuyer would need to have an income of at least $333,270, up from $303,000 in the 4th quarter of last year.
Only 15 percent of households in San Francisco have incomes above that threshold, among the lowest in the state.
For those who would qualify, the group found a homebuyer would pay $8,330 in mortgage payments, taxes and insurance.
People searching for homes in on the Peninsula and in Silicon Valley won’t find much relief. The realtors found an income of $326,040 would be needed to afford the median priced home of $1.5 million in San Mateo County.
In Santa Clara County, an income of $284,210 would be needed to afford the median home price of $1.27 million. Those interested in buying in Marin County, median price $1.36 million, would need a household income of $281,520.
Solano County remains the most affordable county in the Bay Area according to the realtors’ latest report. Prospective homebuyers would need an income of $89,000 to afford the median home price of $436,000. It was also the only county in the Bay Area where the income needed for the median priced home was under $100,000.
Statewide, the group found 31 percent of California households could afford a single family home. The state median home price in the first quarter was $538,640, down slightly from $550,990.
To calculate the figures, the association assumes a homebuyer is putting 20 percent down on a 30-year fixed rate home loan, with an interest rate of 4.44 percent.