Fewer than one-third of Orange County residents could afford to buy a median-priced, single-family home here as of the second quarter of 2011, a California Association of Realtors analysis shows.

The report’s Orange County highlights:

  • Only 31% could afford the home. That compares with 27% in Q2 2010 and 33% in Q1 2011.
  • The median, single family home price: $536,720
  • A minimum qualifying income of $115,320 would be required.
  • Monthly payments, including taxes and insurance, were pegged at $2,880 a month.

Statewide, the percentage of buyers who could afford to purchase a median-priced, single-family home dropped to 51% in the second quarter of 2011, down from 53% in Q1 2011 but up 46% in Q2 2010.

California buyers needed a minimum annual income of $63,080 to qualify for a $293,580 median-priced home in Q2 2011. The monthly payment, including taxes and insurance, would be $1,580, assuming a 20 percent down payment and an effective composite interest rate of 4.85 percent, according to the report.

From C.A.R. President Beth L. Peerce:
“The pending cut in the Fannie Mae/Freddie Mac high cost loan limits will make it harder and more expensive for those who live in high cost areas to purchase a home. Buyers who plan to finance their home purchase with a mortgage of $625,500 or more will face higher interest rates, higher down payments, and tighter loan qualification requirements beginning October 1.”

View post here: http://www.ocregister.com/articles/afford-312139-fewer-home.html

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