In California, more can now afford homes

LOS ANGELES, Nov. 11 (UPI) -- The California Association of Realtors said the percentage of the state's households that could afford a home edged higher in the third quarter.

Households that could afford a home at the statewide median price rose from 51 percent to 52 percent in the third quarter, the Los Angeles Times reported Friday.

Low interest rates and falling prices pushed affordability higher, the group said.

The association's president, Beth Peerce, said a major hurdle for homeownership is tighter credit.

The median price for homes in the state in the third quarter was $292,120. To afford a home of that price, the household would have to earn at least $61,530, the association said.

Putting 20 percent down as an initial payment, a consumer would pay $1,540 per month for a mortgage payment, assuming a long-term interest rate of 4.63 percent.