As interest rates lowered and the prices for existing homes stabilized, more Californians realizes their dream of becoming homeowners during the first quarter of 2015. According to the California Association of Realtors, 34 percent of people who wanted to buy a home during this first quarter were able to do so, a figure that rose from 31 percent during the last quarter of 2014. This number is also one percent higher than the first quarter of 2014, but still lower than the 56 percent reported during the first financial quarter of 2012.
As noted by CAR, new homeowners were required to earn sufficient incomes to be able to purchase median-priced, single-family homes in the state. During the first quarter of 2014, potential buyers needed to make on average $87,700 to qualify for a mortgage on an existing home priced at $442,430, the average home sale price. Buyers also could expect to make monthly payments with taxes and insurance included set on average at $2190 a month on a 30-year, fixed-rate mortgage, with 20 percent down at the time of purchase and at an interest rate of 3.97 percent.
In contrast, the first quarter of 2014 saw home prices set at $418,570 on average, requiring that people make at least $86,800 to qualify for a mortgage. Mortgage rates were 4.46 percent, slightly higher than the current rate of 3.97 percent. Despite interest rates coming down, nine regions in California still experienced difficulties with home prices being affordable for potential home buyers.