Just 27 percent of Los Angeles County households could afford to purchase a median-priced home in the last three months of 2015, down from 28 percent in the comparable year-ago period, the California Association of Realtors reported Thursday.
In calculating its affordability index, CAR used a 30-year fixed mortgage with a 4 percent annual interest rate as a benchmark. After factoring in taxes, insurance and a 20 percent down-payment, a local household would need a qualifying annual income of $96,420 to afford a property, making average monthly payments of $2,410, according to the association’s estimates.
In the most recent quarter, the countywide median home price was $481,940, according to figures.
In neighboring Orange County, 21 percent could afford a median-priced home near the end of last year, unchanged from the comparable year-ago period.
A local household would need a qualifying annual income of $141,790 to afford an Orange County property, making average monthly payments of $3,540, according to the association’s estimates.
In the fall, the median home price in Orange County was $708,700, CAR data showed.
Statewide, 30 percent of prospective homebuyers could qualify to purchase a property at the fourth-quarter median price of $483,050, vs. 29 percent in the third quarter of 2015, when the median price stood at $488,540.
According to CAR, statewide housing affordability peaked at 56 percent in the first quarter of 2012.
— Wire reports