The number of people who could afford to purchase median-priced homes in the Los Angeles region fell in June from the year-earlier period but was unchanged from May, the California Association of Realtors said.
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 15 percent of Los Angeles households could afford to purchase a median-priced home in June, down from 17 percent in June 2004.
The index is largely dependent on median home prices, which rose to $512,890 in June from $445,140 one year earlier, according to the CAR. In May, the median home price in L.A. County was $503,450.
Statewide, 16 percent of the population could afford to buy a home, down from 18 percent in the year-ago period and unchanged from May. The median home price statewide in June was $542,720, versus $468,050 a year earlier and $522,900 in May.
The areas with the highest levels of affordability were the High Desert, which includes Palmdale and Lancaster, with 32 percent of households qualifying, and Sacramento, at 21 percent. The least affordable markets were the Northern Wine Country and Santa Barbara and Sonoma counties, where only 7 percent of households could afford to buy a median-priced home. Santa Barbara County’s South Coast area had the most expensive homes, where the median price was $1.3 million in June.
Nationwide, the median home price was $219,000 in June.