First-time home buying slightly more affordable in 2019

The California Association of Realtors reports that 48 percent of Californians could afford an entry-level home in 2019 as opped to 46 percent in 2018. A starter home in California was defined as $515,980 median price with a $2,660 monthly payment (including taxes and insurance). This would require a yearly income of close to $80,000 to qualify.

Nationwide, 71% first-timers could afford the $233,670 median home which comes to a $1,210 monthly payment and requires a $36,300 income.

Analysts attributed the slight improvement in affordability to lower mortgage rates and a strong economy which kept wages outpacing home prices.

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