Orange County’s affordability index in May remained at 11%, the California Association of Realtors said Thursday.
The index tracks the percentage of households able to afford a median-priced home here. The index was 11% in April and in May of last year.
To be sure, some home buyers here are using aggressive financing, including interest-only loans, to stretch their income.
Statewide the index dropped 3 percentage points to 16% compared to May 2004. In April the index was 17%.
A home buyer needs to earn at least $122,690, up about 20% from a year ago, to buy the state’s median-priced home at $522,590, according to the association. That’s based on a mortgage rate of 5.85% and assuming a 20% down payment.
The Inland Empire was much more affordable at 20%. The least affordable region was Santa Barbara with an index of 6%.
