California starter-home affordability nears 4-year high

A California house hunter’s chances to qualify to buy an entry-level home haven’t been this good since early 2003.

My trusty spreadsheet reviewed a curious cost measurement from the California Association of Realtors that estimates how many households could qualify to buy an entry-level home. CAR’s metric assumes the hypothetical buyer will find a house priced 15% below California’s median-priced house, use an adjustable-rate mortgage with a 10% down payment, and have payments equal to 40% of income.