59% of California households could afford to buy an entry-level home in the state in the fourth quarter of 2008, up from 33% a year earlier, according to the LA-based California Association of Realtors.
The minimum household income needed to buy an entry-level California home at $248,030 was $48,900 in the October-to-December period.
That calculation is based on an adjustable interest rate mortgage of 6.02 percent and assuming a 10 percent down payment.
First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,630 for the fourth quarter of 2008.
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