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Thursday, Mar 28, 2024

Homes Even Less Affordable

Home affordability in Los Angeles County fell to 19 percent in the fourth quarter of 2006, according to statistics just released by the California Association of Realtors. The C.A.R. Index measures first-time buyer affordability, meaning the percentage of households that can afford to purchase an entry level home in California’s communities. The report noted that the minimum household income needed to purchase an entry level home costing $477,400 in California in the fourth quarter was $96,760. The formula is based on an adjustable interest rate of 6.36 percent with a deposit of 10 percent. Los Angeles County housing was least affordable of the state’s regions just behind Santa Barbara. The affordability index for L.A. County fell from 21 percent in the fourth quarter of 2005.

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