Home Affordability in L.A. Falls in April

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The number of people who could afford to purchase median-priced homes in the Los Angeles region decreased sharply in April from the year-earlier period, the California Association of Realtors said. Affordability in April was down one percentage point from March.


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 16 percent of Los Angeles households could afford to purchase a median-priced home in April, down from 20 percent in April 2004. In March, affordability was at 17 percent.


The index is largely dependent on median home prices, which rose to $485,900 in April from $423,480 one year earlier, according to the CAR. In March, the median home price in L.A. County was $466,250.


Statewide, 17 percent of the population could afford to buy a home, down from 20 percent in the year-ago period and 18 percent in March. The median home price statewide in April was $509,230, versus $452,680 a year earlier and $496,550 in March.


The areas with the highest levels of affordability were the High Desert, which includes Palmdale and Lancaster, with 34 percent of households qualifying, and San Bernardino and Fresno, which tied at 24 percent. The least affordable markets were the Northern Wine Country, San Francisco and Sonoma, where only 8 percent of households could afford to buy a median-priced home. Santa Barbara County, while coming in a bit higher at 10 percent, had the most expensive homes: Its South Coast area median price was $1.3 million in April.


Nationwide, the median home price was $206,000 in April.

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