Home Affordability in L.A. Declines Sharply in February

0

The number of people who could afford to purchase median-priced homes in the Los Angeles region decreased sharply in February from the year-earlier period, the California Association of Realtors said. Affordability in February was unchanged from January.


The monthly California Housing Affordability Index, a measure of home affordability based on home prices, income and mortgage rates and other housing costs, showed that 17 percent of Los Angeles households could afford to purchase a median-priced home in February, down from 22 percent in February 2004. In January, affordability was also at 17 percent.


The index is largely dependent on median home prices, which rose to $473,550 in February from $390,100 one year earlier, according to the CAR. In January, the median home price in L.A. County was $475,800.


Statewide, 19 percent of the population could afford to buy a home, down from 25 percent in the year-earlier period but up from 18 percent in January. The median home price statewide in February was $471,620, versus $391,550 a year earlier and $485,700 in January.


The areas with the highest levels of affordability were the High Desert, which includes Palmdale and Lancaster, with 38 percent of households qualifying, and Sacramento, with 23 percent. The least affordable market was Santa Barbara County, where only 8 percent of households could afford to buy a median-priced home priced at $638,890 in February.


Nationwide, the median home price was $191,000 in February.

No posts to display