$982 Monthly Payment for Aug. Home Buyers in California Is Lowest On Record, 64% below 2006
|August 2011||June 2006||April 1989|
"An estimated 37,734 new and resale houses and condos were sold statewide last month. That was up 8.8% from 34,695 in July, and up 10.2% from 34,239 for August 2010. An increase from July to August is normal for the season. California sales for the month of August have varied from a low of 29,764 in 1992 to a high of 73,285 in 2005, while the average is 48,344.
The median price paid for a California home last month was $249,000, down 1.2% from $252,000 in July, and down 4.2% from $260,000 for August a year ago. The year-over-year decrease was the 11th in a row after 11 months of increases. The bottom of the current cycle was $221,000 in April 2009, while the peak was $484,000 in early 2007.
MP: The monthly mortgage payment data above are pretty amazing. Compared to 2006, the typical California first-time home buyer today saves more than $21,000 annually in housing costs (adjusted for inflation). We hear all the time that median household income is flat or falling, but that doesn't account for the significant savings in housing costs in states like California, at least for some home buyers, especially first-time buyers. Even with no change in median income, some recent, first-time home buyers are experiencing the equivalent of a $21,000 increase in real income compared to 2006.