Photo by John Schreiber.
Photo by John Schreiber.

Housing affordability in metropolitan Los Angeles improved in the fourth quarter of 2014 when compared to the previous quarter, but was unchanged from the fourth quarter of 2013, the California Association of Realtors reported Thursday.

The percentage of home buyers able to purchase a median-priced, existing single-family home in greater Los Angeles edged up to 34 percent from 32 percent in the third quarter, and matched the 34 percent of the fourth quarter of 2013, according to the association’s Traditional Housing Affordability Index.

The index — which measures the percentage of households able to afford a median-priced, single-family home — is among the most fundamental affordability measure for home buyers in the state, according to the association.

In metropolitan Los Angeles, home buyers needed a minimum annual income of $91,550 to qualify for the purchase of a $414,040 median-priced, existing single-family home in the fourth quarter of 2014, according to CAR.

The monthly payment, including taxes and insurance, on a 30-year, fixed- rate loan would be $2,100, assuming a 20 percent down payment and a composite interest rate of 4.2 percent.

In Orange County, the HAI stood at 21 percent in the fourth quarter. Home buyers needed a minimum annual income of $139,400 to qualify for the purchase of a $688,450 median-priced, existing single-family home. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,490, assuming a 20 percent down payment and an effective composite interest rate of 4.2 percent.

Statewide, it took a minimum income of $91,550 to buy a median-priced $452,140 single-family home, with a monthly payment averaging $2,290, according to CAR figures.

The percentage of California home buyers able to afford those prices stood at 31 percent in the fourth quarter, up from 30 percent in the third- quarter, but down from 32 percent in the year-ago period.

Nationwide, 59 percent of those seeking to buy homes in the fourth quarter of 2014 matched or exceeded the $42,260 minimum income needed to purchase a median-priced $208,700 home, with an average payment of $1,060, the index showed.

City News Service

Leave a comment

Your email address will not be published.