The average house payment in California has more than doubled since the dawn of the pandemic, with home sales running more than 40 percent below average.
The highest mortgage rates in 23 years have slammed house hunters with soaring monthly payments, resulting in a sales slowdown, the Orange County Register reported, citing the California Association of Realtors.
The typical house payment in September jumped to $4,717 a month for a median-priced $843,340 single-family home, given a 20 percent down and the latest 30-year fixed mortgage rate of 7.63 percent. In August, the typical payment was $4,359.
In February 2020, the typical payment was $2,075 for a median-priced $579,770 home, with a mortgage rate of 3.47 percent.
While the typical home price since then rose 45 percent, the typical payment has shot up 127 percent, squeezing affordability for many prospective buyers.
In December 2000, when mortgage rates were last at current highs, the median sale price in the Golden State was $248,000 – then the fourth-highest on record.
Home prices have shot up 240 percent in 23 years, while the average income has risen 96 percent, leading to a housing affordability crunch.
California home sales now run 41 percent below the average buying pace since 1990, according to the Register.
The rise in house payments varied last month across Southern California.
In Los Angeles County, the typical house payment has gone up 146 percent to $5,116 for a typical $914,640 home, compared to $2,078 for a typical $580,690 home in early 2020.
In Orange County, the typical house payment rose 133 percent to $7,328 for a $1.31 million home. In San Bernardino County, the house payment rose 126 percent to $2,657 for a $475,000 home. In Riverside County, the house payment rose 119 percent to $3,356 for an $600,000 home.
— Dana Bartholomew
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